The amount of money employees saving for retirement can contribute to their 401(k) plans has been raised again by the IRS.
For 2015, cost-of-living adjustments allow employees to contribute $18,000 each year to their 401(k), an increase from $17,500 in 2014.
The increase also includes 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan.
For those over age 50 who are trying to save more rapidly, the catch-up contribution limit has been raised from $5,500 to $6,000.
For IRAs, however, the annual contribution limits do not change. They remain at $5,500, and the catch-up limit stays at $1,000.
The tax deduction is phased out for contributors to a traditional IRA who are single or heads of households whose adjusted gross income is between $61,000 and $71,000, up from $60,000 and $70,000 for 2014.
In the case of married couples who file jointly – and the spouse making the IRA contribution is covered by a workplace retirement plan – the income phaseout range is $98,000 to $118,000, up from $96,000 to $116,000.
If the IRA contributor is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $183,000 and $193,000, up from $181,000 and $191,000. The phaseout range remains $0 to $10,000 for a married individual filing a separate return who is covered by a workplace retirement plan.
For Roth IRAs in 2015, the adjusted gross income phaseout range is $183,000 to $193,000 for married couples filing jointly, an increase from the 2014 levels of $181,000 to $191,000. The phaseout range is $116,000 to $131,000 for singles and heads of households, up from $114,000 to $129,000 in 2014. For married individuals filing separate returns, there is no increase, and the phaseout remains at $0 to $10,000.
For workers with low or moderate income, the adjusted gross income limit for the retirement savings contribution credit (saver’s credit) is $61,000 for married couples filing jointly in 2015, up from $60,000. For heads of households, the limit increases by $750 for 2015 to $45,750, and for singles and married individuals filing separately, the limit increases by $500 to $30,500.
If your business received a PPP loan, you may be eligible to have that loan forgiven. Our team can help you ensure that your loan forgiveness application is filed correctly and timely. Complete our five-question form, and we can provide a quote for your application by the next business day.Request a Quote