IRS Announces 2015 Limits for Retirement Plan Contributions
October 29, 2014
The IRS recently announced the maximum contribution amounts for 2015 which individuals can contribute to retirement savings accounts. 401(k)s The annual contribution limit for employees who participate in 401(k), 403(b) and most 457 plans will be $18,000 for 2015 which is up from $17,500 in 2014. 401(k) Catch-Up If you are an employee aged 50 or older, you can stash a little more. The catch-up contribution limit for these plans goes up to $6,000 for 2015, up from $5,500. SEP IRAs and Solo 401(k)s For the self-employed or small business owners, based on the amount they can contribute as an employer; the amount they can save in a SEP IRA or a solo 401(k) will go up to $53,000 next year. This is up from $52,000 in 2014. If based on a percentage of their salary; the compensation limit used in the savings calculation will be $265,000. This is up from $260,000 in 2014. IRAs The annual limit on contributions to an Individual Retirement Account will remain the same at $5,500 for 2015. The catch-up contribution limit is unchanged at $1,000. SIMPLE IRA For 2015, the contribution limit will increase to $12,500 for SIMPLE retirement accounts. This is an increase of $500 over 2014’s limit. The SIMPLE catch-up limit is $3,000, up from $2,500 in 2014.