As we approach the end of 2015, we want to remind you of the Retirement Plan Contribution Limits for 2015. Deferring earnings to retirement plans may allow you to reduce your taxable income for 2015.
401K, 403B AND MOST 457 PLANS
Regular Contribution Limit- $18,000
“Catch-up” contribution limit for employees who participate in the above listed plans and are over age 50- Increased to $6,000
Defined contribution plan limits
Contribution Limit- $53,000
Annual compensation limit used to determine contribution for most plans-$ 265,000
IRA and Roth IRA contribution limits
Basic Contribution Limit-$5,500
“Catch-up” contribution limit for individuals over age 50 Remains $1,000
Phase out ranges for tax deductibility of traditional IRA
If covered by a plan:
Single/HOH: Increased to $61,000 – $71,000 (was $60,000 – $70,000 in 2014)
Married filing jointly: Increased to $98,000 – $118,000 (was $96,000 – $116,000 in 2014)
Married filing separately: Remains $0 – $10,000
If one spouse is covered by a plan:
Filing jointly: Increased to $183,000 and $193,000, (was $181,000 and $191,000 in 2014)
Phase out ranges for eligibility to contribute to Roth IRA
Single/HOH: Increased to $116,000 – $131,000 (was $114,000 – $129,000 in 2014)
Married filing jointly: Increased to $183,000 to $193,000 (was $181,000 – $191,000 in 2014)
Married filing separately: Remains $0 – $10,000
If you have any questions about how these changes may have an impact on your financial plan, please contact your advisory team.
