The numbers were released back in October, but the first week of January is the time where many folks increase their automatic deferrals into 401k plans and other tax favorable accounts. With that said,we thought it would be timely to remind everyone of the increase in limits for 2015. Below is a brief summary of the most common accounts we see. You can visit the IRS for more details (links at the bottom of this post).
401K
Annual deferral limit increases from $17,500 to $18,000. The catch-up increases from $5,500 to $6,000
IRA
The limits went unchanged at $5,500 and $1,000 for catch-up contributions
SIMPLE IRA
The maximum contributions increased from $12,000 t0 $12,500 and the catch-up contribution increased from $2,500 to $3,000
SEP IRA
The maximum contribution increased from $52,000 to $53,000
HSA (Health Savings Account)
For self only coverage, the contribution limit is $3,350 and for families it is $6,650. This is up from $3,300 and $6,550 respectively. For those over age 55, there is an additional allowance of $1,000
Click here for a link directly to the IRS publication regarding qualified plan contributions.
Click here for a link directly to the IRS publication regarding HSA contributions.
Single Point of View is our way to occasionally share planning ideas relating to personal finance. Our goal is to pass along concepts that you may not be exposed to on a daily basis.
