Thursday, October 23, 2014

IRS Raises Retirement Plan Contribution Limits for 2015

The IRS announced today that contribution limits for some retirement plans will be going up for 2015.

  • IRA: The IRA contribution limit will remain at $5500 and the "catch-up" limit remains at $1000.
  • SEP IRA and Solo 401ks: Those who are self employed or own their own small business will be pleased that contribution limits have moved from $52,000 in 2014 to $53,000 in 2015. These are subject to certain percentages of one's salary, so be sure to ask your accountant for details.
  • SIMPLE IRA: Contribution limits on SIMPLE IRAs have gone up slightly, from $12,000 in 2014 to $12,500 in 2015. Also, the "catch-up" limit is now $3000 rather than $2500.
As pensions continue to disappear and the onus for retirement savings falls back to the worker, setting aside retirement funds becomes even more important. Obviously, the earlier one starts saving for retirement the better.

Many firms offer free IRA accounts and free purchases and sales of a great number of mutual funds, ETFs, etc. The more you save on transaction fees and related expenses, the more you'll have for retirement.