November 25, 2014

IRS Increases 2015 Pension Plan Contribution Limits

The IRS recently announced increases in annual contribution limits for certain retirement savings accounts for tax year 2015.  According to the IRS announcement, the 2015 adjustments are triggered by the cost-of-living index.


Per the IRS announcement, the contribution limits increased for employees who participate in plans such as:
  • 401(k) plans,
  • 403(b) plans,
  • most 457 plans, and
  • the federal government’s Thrift Savings Plan.
The elective contribution limit in these plans increased from $17,500 to $18,000 per year.  The catch-up contribution limit for employees aged 50 and over increased from $5,500 to $6,000 per year.


According to the IRS announcement, not all pension plans will see a cost-of-living adjustment in the annual contribution limits.  For example, for tax year 2015, the annual contribution limit for an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for an IRA for individuals aged 50 and over will also remain unchanged at $1,000 per year.


See the IRS’s full list of 2015 pension plan adjustments at:
http://www.irs.gov/uac/Newsroom/IRS-Announces-2015-Pension-Plan-Limitations;-Taxpayers-May-Contribute-up-to-%2418,000-to-their-401(k)-plans-in-2015
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