Changes To 2015 Retirement Plan Contribution LimitsSubmitted by Castlebar Asset Management on October 28th, 2014
The IRS has recently announced changes to retirement plan contribution limits for 2015. There is not an across the board increase for all plans but below are some of the highlights.
Increased 401k contribution limits
The maximum amount employees can contribute to their 401k, 403b, 457 plans and government Thrift Savings Plan has increased to $18,000 starting next year. This is an increase of $500 from the $17,500 limit in 2014.
Additionally, catch up contributions allowed for those over 50 has increased by $500 to $6,000 in 2015. Individuals over 50 can contribute a total of $24,000 in 2015 up a total $1,000. Catch up contributions are not subject to discrimination testing so even if you have had contributions limited in the past it will not apply to your catch up contributions.
SEP-IRA and Solo 401k contribution changes
For self-employed and small business owners can save more in their SEP-IRAs and solo 401k's. SEP-IRA contribution limits have increased from $52,000 to $53,000. Solo 401k's have seen their salary deferral limits increase to $18,000 and the catch up contribution for those over 50 is $6,000. Including the employer contribution the total contribution has increased from $52,000 to $53,000.
No change to IRA limits
Unfortunately there are no changes to the contributions for IRAs or Roth IRAs in 2015. The amount remain $5,500 for those under 50 and $6,500 for those 50 and over.
If you have questions about how these changes may apply to your situation please feel free to reach out to me. I would be pleased to review this with you.
Disclaimer: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.