Blog - IRS Announces Increased 401(k) Contribution Limits for 2015


The Internal Revenue Service (IRS) recently announced the 2015 cost-of-living adjustments for pension and retirement plan limitations. Not all limitations have been increased. Changes that you might be interested in include:

  • The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increases from $17,500 to $18,000.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increases from $5,500 to $6,000.
  • The limitation for defined contribution plans (e.g. 401(k), 403(b), etc.) increases from $52,000 to $53,000. This is the total of elective deferrals, employer contributions, and employee elective after-tax contributions.
  • The phase out break points for contributing to a Traditional IRA increases slightly as will the Roth IRA phase out limitations.

The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.


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