Retirement Plan Contributions for 2015

The Treasury Department recently announced inflation adjusted figures for retirement account savings for 2015, and this year there is more room for savings for wage and salary types and the self-employed.  Provided below are some of the details:

• 401(k)s. For employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings plan, the annual contribution limit is $18,000 for 2015, up from $17,500.
• SIMPLE IRA. The contribution limit on SIMPLE retirement accounts for 2015 is $12,500.  This is up from $12,000 in 2014.
• Defined Benefit Plans. These are powerful pension plans for high earning self-employed individuals, and the limitation on the annual benefit remains unchanged at $210,000 in 2014.
• IRAs. For the third year in a row, the limit on annual contributions remains the same at $5,500.
• Roth IRA Phase Outs. The AGI phase-out range for taxpayers contributing to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014.  For singles and heads of households, the income phase-out range is $116,000 to $131,000 up from $114,000 to $129,000.

See Ashlea Ebeling, IRS Announces 2015 Retirement Plan Contribution Limits for 401(k)s and More, Forbes, Oct. 23, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.