Increased limits recently announced by the Internal Revenue Services for 2015 contribution limits for both employer-sponsored plans and individual retirement accounts (IRAs) may provide individuals and businesses with opportunities for additional tax savings in the coming year. These increases included:

  • Employees participating in 401(k), 403(b) and most 457 plans may defer up to $18,000 in earnings, an increase from $17,500.
  • The annual dollar limit on combined contributions to defined contribution plans is $53,000, an increase of $1,000.
  • Simple IRA employee contribution limits is $12,500 for 2015, up from $12,000. Catch-up contributions also increased to $3,000 for individuals 50 years of age and older.
  • Individuals who contribute to IRA and workplace retirement plans will be allowed slightly more income in 2015 before they can no longer deduct their contributions. For singles the modified adjusted gross income (MAGI) phase-out is now between $61,000 and $71,000. 2014 amounts were between $60,000 and $70,000. Similarly, married couples will also have a higher MAGI this year between $183,000 and $193,000 (married filing jointly).
  • The income phase-out levels for roth IRA contributions have also increased for singles to be between $116,000 and $131,000, and between $183,000 and $193,000 for married couples filing jointly. This is an average increase of $2,000 from 2014.

Contact Doeren Mayhew’s tax advisors in Michigan, Houston or Ft. Lauderdale to help maximize your tax savings related to your 2015 contributions.