The maximum 401 (k) contribution rises to $18,000, up $500 from 2014. Individuals who were born before 1966 are allowed to put in as much as $24,000. These payin limits apply to 403(b) and 457 plans as well. The ceiling on SIMPLEs increases to $12,500…$15,500 for individuals who are age 50 or older this year.
Retirement plan contributions can be based on up to $265,000 of salary. The payin limitation for defined contribution plans increases to $53,000. Anyone making over $120,000 is highly paid for plan discrimination testing.
The income ceilings on Roth IRA payins tick upward. Contributions phase out at AGIs of $183,000 to $193,000 for couples and $116,000 to $131,000 for singles.
Deduction phaseouts for regular IRAs start at higher levels as well, ranging from $98,000 to $118,000 of AGI for couples and from $61,000 to $71,000 for singles. If only one spouse is covered by a plan, the phaseout zone for deducting a contribution for the spouse who isn’t covered begins at $183,000 of AGI and finishes at $193,000.
The IRA and Roth payin caps remain at $5,500…$6,500 for those 50 and up. And the partial credit for retirement plan payins phases out at higher levels.
For marrieds…at AGIs over $61,000. Household heads…$45,750. Singles…$30,500.