The 401(k) is one of the most popular retirement planning devices in the United States and it is important to know the maximum contribution levels in 2015. For those under 50 years old, the maximum tax free contribution is now $18,000 which is a $500 increase over the previous year. Those over 50 have also gotten an increase and now may max out at $24,000 in contributions. The defined contribution limit also rose and now sits at $53,000 which is not tax free but may be rolled into a Roth IRA for tax savings.
See Brian Stoffel, Retirement Planning: Here’s the Maximum 401k Contribution for 2015, The Motley Fool, May 2, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
