Taxpayers Can Invest up to $18,000 in 401(k) Plans in 2015
The Internal Revenue Service posted the annual cost-of-living adjustments for pension plans and other retirement plans for 2015, allowing taxpayers to contribute up to $18,000 in their 401(k) plans in 2015.
Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment, the IRS noted. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment:
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan has increased from $17,500 to $18,000.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $5,500 to $6,000.
The limit on annual contributions to an Individual Retirement Arrangement remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000. Read more on Accounting Today.