Yesterday the IRS announced the following changes to 2015 retirement plan contributions.
- The annual contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan (TSP) is increased from $17,500 to $18,000. (That equals $1,500 per month)
- The annual catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan (TSP) is increased from $5,500 to $6,000.
- The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
You can contribute to both your employer sponsored 401(k), 403(b), 457, TSP and a Roth IRA (assuming you are under the Roth IRA income cap). If you’re under age 50, that totals $23,500 you can save toward retirement in 2015!