Contribution Limits to 401(k) Plans for 2015 are Increased

The IRS has announced upward revisions to the annual contribution limits for pension and other retirement plans for 2015. Taxpayers will be allowed to make contributions of $18,000 to 401(k) plans for 2015. The increase, from $17,500 to $18,000 also applies to 403(b) plans and 457 plans. In addition, the limit on "catch-up" contributions for taxpayers over the age of 50 has been increased from $5,500 to $6,000.

Many of my clients will benefit from these increases in the limits as these will result in bigger deductions for their retirement savings. Those that are saving for retirement with Roth accounts will benefit from the increased contribution limits as well.

- Mark S Gleason CPA
  www.lakes-cpa.com