For 2015 the IRS has given the new limits regarding retirement contributions as well as estate and gift tax exemptions.
Regarding retirement contributions employees may now defer $18,000 annually to their employer sponsored plan including a 401k, 403b, and 457 plans. This is an increase from last year’s $17,500 amount. Additionally, employees age 50 or older can now make an age based catch-up contribution of $6,000 which is a $500 increase from last year’s $5,500 amount.
The contribution limits for SIMPLE IRAs increases to $12,500 with an age based catch-up for $3,000 for those age 50 or older. This is an increase of $500 on from last year’s $12,000 and $2,500 amounts respectively.
There is no change in the contribution limits to IRAs. Those amounts stay at $5,500 annually with the 50 and over $1,000 age based catch-up.
The Roth IRA contribution phase-outs have increased to $183,000 to $193,000 for married couples and $116,000 to $131,000 for single filers.
The estate exemption has increased $90,000 to $5.43 million per person ($10.86 million for a couple electing to combine and haven’t made any prior lifetime gifts). The annual exclusion amount remains at $14,000 ($28,000 for married couples electing to split gifts).
Should you feel the need to ask questions regarding any of the changes and how they may apply to you, please feel free to give us a call or send an email.
Sterling Raskie, MSFS, CFP®, ChFC®
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