IRS Announces New 457 Plan, Other Retirement Plan Contribution Limits

Oct. 24, 2014 - PRLog -- The Treasury Department Releases 2015 Figures For Your 457 Plan, IRA, and Other Retirement Plan Limits.

401(k), 403(b), Thrift Savings Plan, & 457 plan Contribution Limits

The maximum contribution to a 457 plan, 401(k), 403(b), or TSP is $18,000.  For those of you over the age of 50, or turning 50 by 12/31/2015, your max contribution is $24,000.

Traditional & Roth IRAs

The $5,500 limit on annual contributions to a Traditional IRA or Roth IRA will stay the same in 2015.  The age 50 catch-up contribution limit also will stay the same at $1,000.

Deductible IRA (Phase-Out Limits)

In 2015, the deduction for taxpayers making contributions to a Traditional IRA is phased out for singles and heads of household covered by a workplace retirement plan when modified adjusted gross income (MAGI) is between $61,000 and $71,000.

For married couples filing jointly, if the spouse making IRA contributions is covered by an employer-sponsored retirement plan, the income phase-out range is $98,000 to $118,000.  For a spouse who is making IRA contributions but is not covered by a workplace retirement plan, the deduction is phased out when the couple’s income is between $183,000 and $193,000.

A married person filing separately and who is covered by a employer-sponsored retirement plan, the phase-out range is $0 to $10,000.

Roth IRA phase-Outs

If you're married and filing jointly, the MAGI phase-out range for an individual contributing to a Roth IRA is $183,000 to $193,000.  For singles and heads of household, the income phase-out range is $116,000 to $131,000.

If you earn too much to contribute to a Roth IRA, there's a way to open a non-deductible IRA, then convert it to a Roth IRA since Congress recently lifted income restrictions for conversions to a Roth IRA.

As always, give some thought to whether it's best to make pre-tax or post-tax contributions to your 457 plan, IRA, or other retirement plan.  Tax rates change from time to time and you'll want to consult with an experienced financial and tax professional for advice.

You can read more about the IRS's new 457 plan limit, IRA, other retirement plan limits www.PublicRetirementPlanners.com