401K Contribution Limits 2015-2016
401k Contribution Limits for 2015-2016
Generally there are several contribution limits that apply to 401K plans. The
first is the limits placed on the employee, the second is the limits placed on
the employer and third is the pre-tax contributions versus total contributions
At this time 401K rules permit plan participants that will be age 50 before the
end of the calendar year to make additional contribution of the catch up type
limits on a pre-tax basis as indicated in the table below.
2014
|
2015
|
|
Age 49 and under |
$17,500
|
$18,000
|
Age 50 and older |
Additional $5,500
|
Additional $6,000
|
Roth and Traditional IRA contribution limits
2014
|
2015
|
|
Age 49 and under |
Up to $5,500 (must have employment
compensation)
|
Up to $5,500 (must have employment
compensation)
|
Age 50 and older |
Additional $1,000
|
Additional $1,000
|
Traditional IRA modified adjusted gross income limit for partial deductibility
2014
|
2015
|
|
Single |
$60,000-$70,000
|
$61,000-$71,000
|
Married—Filing joint returns |
$96,000-$116,000
|
$98,000-$118,000
|
Married—Filing separately |
$0-$10,000
|
$0-$10,000
|
Non-active participant spouse |
$181,000-$191,000
|
$183,000-$193,000
|
Roth IRA modified adjusted gross income phase-out ranges*
2014
|
2015
|
|
Single |
$114,000 - $129,000
|
$116,000 - $131,000
|
Married—Filing joint returns |
$181,000 - $191,000
|
$183,000 - $193,000
|
Married—Filing separately |
$0-$10,000
|
$0-$10,000
|
* As of 2010, there is no income limit for taxpayers who wish to convert a traditional IRA to a Roth IRA. |
2008 2009 2010 2011 2012
Pretax or tax deferred 15,500 16,500 16,500 *
Catch up contribution 5,000 5,500 5,500 *
* to be calculated for inflation increments of $500
As represented above the contribution limits of 2011 applicable for
401K programs will be calculated for inflation, which is a form of
cost of living index. Those limits will move up in $500 increments.
No increase in maximum contribution levels for 2010 may be a little
hard to swallow. It should b e noted that the contribution level has
grown every year except 6 since it began in 1987. The maximum 401 K
contribution level has never declined.
In 2009 there were some rumors that the maximum 401 K contribution
level would possibly decrease due to the Consumer Price Index (CPI)
decreasing year after year. That would have been a hard one to
swallow, but it did not decrease. We can only wait to see if 2011
will bring another increase. The maximum contribution has never
remained the same for three yeas in a row so let’s hope it increases
in 2011.
401k Plan | 401k Plan Services | 401k Plan Investment Options | 401k Plan Setup