How much can I contribute to my IRA and 401(k) in 2015?

The contribution limits for your 401(k) will be higher in 2015 than in 2014. The maximum you’ll be able to stash in a 401(k), 403(b), 457 or the federal government’s Thrift Savings Plan will increase by $500, to $18,000 in 2015. The catch-up contribution limit for anyone who turns 50 in 2015 will also increase, from $5,500 to $6,000 (for a maximum contribution of $24,000).

The IRA contribution limit will remain $5,500 per person in 2015 (or $6,500 if you turn age 50 anytime during the year).

Income limits also get a boost. The cut-off for contributing to a Roth IRA will rise from an adjusted gross income of $191,000 to $193,000 if married filing jointly, and from $129,000 to $131,000 if single. The size of your contribution will start to phase out if you earn more than $183,000 if married filing jointly (up from $181,000 in 2014) or $116,000 if single (up from $114,000).

The income cut-off to qualify for the retirement savers’ credit will go up slightly, from an AGI of $60,000 to $61,000 if married filing jointly, and from $45,000 up to $45,750 for heads up household. For married individuals filing separately and for singles, the income cut-off will go from $30,000 to $30,500.

For more information about the 2015 retirement-plan figures, contact your local Orange County accountant, or see the IRS announcement:

Read more at http://www.kiplinger.com/article/saving/T047-C001-S002-retirement-plan-contribution-limits-in-2015.html#Q1m7WiMQpF1k3uF2.99

Contact your Orange County CPA.