News & Events

You Can Contribute More to Your 401(k) in 2015

The Internal Revenue Service announced that a number of contribution limits for employees with tax-favored retirement savings accounts were expanded for 2015 as a result of cost-of-living adjustments. The maximum for contributions in 401(k)s, 403(b), most 457 plans, and the government’s Thrift Savings Plan have been raised from $17,500 in 2014 and to $18,000 for 2015. For people over 50 years old, the “catch-up contribution” threshold has been increased from $5,500 to $6,000. Together, the combined total investment for those 50 and older is $24,000 ($18,000 for 401(k) plus $6,000 catch-up contribution).

For a complete list of the contribution limit changes and those that remained unchanged announced by the IRS [click here]. Please contact your Sansiveri tax professional with questions at 401-331-0500.