How Much Can I Contribute to My 401(k) in 2015? (2015 Retirement Contribution Limits)

Good news savers! The IRS announced today new 2015 retirement contribution limits for retirement accounts. Here’s what you need to know:

401(k)

• The elective deferral (contribution) limit for employees who participate in a 401(k) plan is increased from $17,500 to $18,000.
• The catch-up contribution limit for employees aged 50 and over who participate in 401(k) plans is increased from $5,500 to $6,000

–> This means that if you are 50 or older, you can contribute up to $24,000 in your 401(k) in 2015.

IRA

• 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.

–> This means that if you are 50 or older, you can contribute up to $6,500 in your IRA in 2015.

Roth IRA

• The AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014. For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000. For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Check the IRS website for more information on 2015 retirement contribution limits.