In October, the IRS announced plan limits and cost-of-living adjustments (COLA) for 2015 for retirement plans. Some contribution, adjusted gross income (AGI) and compensation limits have changed, but others remain the same. Here’s what you need to know as you plan your 2015 retirement savings contributions:
| 2015 | 2014 | |
| Elective deferrals (401k, 403b & most 457 plans & govt’s thrift savings plan) | $18,000 | $17,500 |
| Catch-up contributions for participants 50+(401k, 403b & most 457 plans & govt’s thrift savings plan) | $6,000 | $5,500 |
| IRA | $5,500 | $5,500 |
| IRA catch-up contributions for participants 50+ | $1,000 | $1,000 |
| Annual benefit limitation under defined benefit plan | $210,000 | $210,000 |
| Limitation for defined contribution plan | $53,000 | $52,000 |
For more information and additional adjustments, click here for the IRS’s Oct. 23, 2014 announcement. Not sure how this impacts your financial portfolio or your tax liability for 2015? We can help. Send us an email or give us a call at 206-386-5455. We can help you evaluate your current plan and make suggestions for adjustments next year.
To your wealth,
Joseph M. Maas, CFA, CVA, ABAR, CM&AA, CFP®, ChFC, CLU®, MSFS, CCIM
President of Synergetic Finance
Author of Exit Insight: Getting to “Sold!”
