The IRS has announced cost of living adjustments affecting dollar limitations for retirement plans and related items for tax year 2015. Highlights include:
- The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans is increased from $17,500 to $18,000.
- The catch-up contribution limit for those aged 50 and over is increased from $5,500 to $6,000.
- The limit on annual contributions to an individual retirement arrangement (IRA) remains unchanged at $5,500.
The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014. |
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