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New Retirement Plan Limits for 2015

Posted on: November 18th, 2014
retirement savingsThe Internal Revenue Service released new retirement contribution limits for the 2015 tax year. However, the contribution limit of $5,500 and the catch-up limit of $1,000 for traditional Individual Retirement Accounts stays the same in 2015. Changes to note include:

SEP IRA and Solo 401(k) plans. $53,000 is the new limit. (Previously $52,000.) Small business owners and the self-employed may contribute this amount as a percentage of their salary.

SIMPLE IRA. $12,500 is the new limit and $3,000 is the new catch-up limit. (Previously $12,000 and $2,500, respectively.)
Roth IRA phase-out. Married couples earning $183,000 to $193,000 and filing jointly, are phased out from making contributions to a

Roth IRA. The income phase-out is $116,000 to $131,000 for singles and heads of household.

Deductible IRA phase-out. Various limitations based on marital and filing status noted below:
 
For singles and heads of household covered by a workplace retirement plan and have modified adjusted gross incomes between $61,000 and $71,000, the deduction for contributions to a traditional IRA is phased out. 

For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $98,000 to $118,000.

For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

For an IRA contributor not covered by a workplace retirement plan and whose spouse is covered, the deduction is phased out if their combined income is between $183,000 and $193,000.

401(k) catch-up. The new limit is $6,000. (Previously $5,500.) This is a catch-up contribution rule for employees 50 or older (and individuals who turn 50 on December 31, 2015 are eligible).

401(k), 403(b), Thrift Savings Plans, and most 457 plans. The new limit is $18,000. (Previously $17,500.)

Review these changes and your current retirement plans with your financial planner. Many other changes occurred to retirement savings plans during this past year, and our attorneys review them here.
 
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