border
border


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.

401(k), 403(b), and most 457 plans

 
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.

Also See:
401k Plan | 401k Plan Services | 401k Plan Investment Options | 401k Plan Setup


401k Options

401k Survey finds investors, employees un-informed

Fidelity 401k Plan Advisor



 








image


image
image

disclaimer