Only a Few Weeks Left to Focus on Saving Before The Holidays
Here is a list of maximum contribution amounts for a few common retirement accounts:
Employer Sponsored Plans (401k & 403b)
- Individuals under 50 = $17,500
- Individuals over 50 = $23,000
- Remember – Even if you turned 50 this year you are eligible to contribute up to $23,000
SIMPLE 401k or SIMPLE IRA
- Individuals under 50 = $12,000
- Individuals over 50 = $14,500
Self Employed IRAs
- Lesser of 20% of adjusted earned income OR $52,000
IRAs
- Individuals under 50 = $5,500
- Individuals over 50 = $6,500
You should act NOW before the Holiday Season as savings deadlines ALWAYS creep up on us!
The IRS has already posted contribution limits for 2015. You should adjust accordingly come January, 2015. Here is a summary with links to the IRS website:
- 401K/403B salary reduction goes from $17,500 (2014) to $18,000 (2015) with catch-up for those over age 50 going from $5,500 (2014) to $6,000 (2015)
- SIMPLE salary reduction goes from $12,000 (2014) to $12,500 (2015) with catch-up for those over age 50 going from $2,500 (2014) to $3,000 (2015)
- Defined contribution maximum goes to $53,000 from $52,000
- IRA limits will not change in 2015
Below are the actual IRS announcement which give more information on phase-outs, etc.