IRS increases 401k contribution limits for 2015

[MaddMaxx]

Just an fyi that this morning the IRS increased the 401k contribution limits for 2015.

going from $17,500 to $18,000 annually, catch up contributions go from $5500 to $6000.

IRS Announces 2015 Pension Plan Limitations; Taxpayers May Contribute up to $18,000 to their 401(k) plans in 2015

 

[kaudrey]

Good news! Thanks for the link.

 

[martyb]

Guess I should un-retire so I can contribute!

 

[rodi]

Guess I should un-retire so I can contribute!

That's what I was thinking. LOL.

I wish they'd raised it last year - it's a $1000 increase for those of us over 50.

 

[2035]

Thanks for this notice. I've been checking off and on all month, as the IRS usually announces in October.


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[athena53]

Guess I should un-retire so I can contribute!

There's no rule that you can't contribute if you're retired, is there?

I retired in May but had contributed only about $2,500 to the company 401(k). I know I need to be aware of income limits that apply, but couldn't I contribute to an IRA as well? And next year when our only income will be DH's SS, a small private pension and investment income, couldn't I contribute to an IRA?

I plan to break down and get a tax advisor for our 2014 taxes because they're getting complicated, and will run these questions by him/her, too.

 

[springnr]

Contributions can only be made from "earned income", or if married and filing jointly a working spouse with earned income may contribute for a spouse that does not have "earned income".

I received a profit sharing check this year, I'm guessing that counts as "earned income" as taxes were withheld.

What is Earned Income?

 

[athena53]

Contributions can only be made from "earned income", or if married and filing jointly a working spouse with earned income may contribute for a spouse that does not have "earned income".

Thanks. Looks like I might be able to contribute more for 2014 (will get advice on that) but not after that since I have no intention of working for wages again.

 

[dallas27]

So are roths ira holding steady, or have they not been announced yet?


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[2035]

So are roths ira holding steady, or have they not been announced yet?


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No changes for IRAs.


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[MooreBonds]

Since my HSA is kind of like a quasi-retirement account (since I'm hoping my medical expenses are low enough to not exhaust the account!), I thought I'd post a note about the HSA limits for 2015, given that there was a small increase:

http://www.irs.gov/pub/irs-drop/rp-14-30.pdf

$3,350 Individual HSA max contribution
$6,650 Family HSA max contribution

They also slightly bumped up the minimum deductibles and max OOP. Handy chart is here:

For 2015, Higher Limits for HSA Contributions and Deductibles

 

[segfault]

Nice. Now, I just need to get my employer to offer a 401k plan!

I had an HDHP/HSA before I took this job, but now have a much more generous health insurance plan, which the new employer provides. On the whole, I can't complain about the lack of a HDHP.

 

[pb4uski]

I just saw an article where they announced tax brackets, etc for 2015.

IRS Adjusts Tax Rate and Deduction Levels for 2015

The Internal Revenue Service announced the annual inflation adjustments for tax year 2015 for more than 40 tax provisions, including the tax rate schedules, and other tax changes.

Revenue Procedure 2014-61 provides details about these annual adjustments. ....

The standard deduction rises to $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly, up from $6,200 and $12,400, respectively, for tax year 2014. The standard deduction for heads of household rises to $9,250, up from $9,100. .....

The personal exemption for tax year 2015 rises to $4,000, up from the 2014 exemption of $3,950. ...

 

[scrabbler1]

Thanks for the info, pb4uski. I have been trying to fine-tune my skeleton, 2-year income tax spreadsheet to see if it pays to "bunch" my itemized deductions into 2014 and take the standard deduction in 2015. While this might seem to be a no-brainer to move forward with that, for me there are offsets to the tax saving, namely, the reduction of the federal ACA subsidy in 2015 (I have to make sure I stay safely below the cutoff; I will get a little closer to it) and having to include some or all of a state property tax rebate in the (M)AGI calculation. Until a few months ago, it was looking like a wash but after entering some new numbers including the 2015 SD and PE it is looking like bunching will provide me with a small 2-year tax saving.