The IRS recently announced their new retirement plan contribution limits for 2015. Some have changed, some have not. Here are the highlights.
401k, 403b, 457 and government TSP plans.
The maximum annual amount that can be deferred from your salary will increase from $17,500 in 2014 to $18,000 in 2015. This limit includes 401(k) plans as well as 403(b), 457 plans, and the government Thrift Savings Plan (TSP).
In addition the catch-up amount for those who will be 50 or over at any point during 2015 will increase from the current $5,500 to $6,000 in 2015. This means that those 50 and over can contribute a maximum of $24,000 during 2015 via salary deferral up from $23,000 in 2014. As a reminder, the catch-up contribution is available to you even if your regular contributions are limited due to your employer’s 401(k) plan failing it’s non-discrimination testing.
Action item: If you are able to contribute the maximum amount be sure to change your salary deferral amount before your first pay period in 2015 to ensure that your deferrals reflect these higher limits for the entire year.
SEP-IRA and Solo 401(k) contribution limits
These self-employed retirement plans are also impacted by the changes in the retirement plan contribution limits for 2015.
You can find out all of the new limits here at Roger Wohlner’s site, here: