2015 IRS contribution limits

In case you missed it, the IRS published their 2015 contribution limits for 401(k), 403(b), etc plans.  The new limit for 2015 for 403(b) plans (what we have) is $18,000 per year.  I’m inordinately excited that we will be increasing our contributions to match – that’s $36,000 of our dollars that will go to our employer plans next year.  We’re already maxing out the matches, so we won’t get any more from our employers though.

I’m also happy to hear that the Roth IRA phase-out AGIs have been adjusted for inflation and it’s extremely likely we’ll fall below the phase-out range this year, so we’ll be able to contribute.  I’m still going to just save up the money and dump it into the accounts in January/February 2016, just in case we’re close.  But just the tax-deferred contributions should lower our taxable income to below the phase-out range. Add to that our mortgage interest, and/or the standard deduction, and we should be good.

Do you max out your tax-deferred retirement plan at work?  If not, what are you waiting for?

2 thoughts on “2015 IRS contribution limits

  1. plantingourpennies

    I was psyched to hear about the increase, too. By increasing each of our withholdings an extra $500, we’ll actually see $405 in additional benefits from the 28% marginal tax rate we pay ($280) and the extra $0.25 in employer match for every $1 I put into my 401K plan (25%*$500 = $125). Not a bad deal!

    1. Mom Post author

      The tax savings alone makes it worth it for us. Now that we can afford to put the max in, we can avoid paying some taxes. Unfortunately, PA taxes you on your gross income with very few deductions, so it doesn’t help us with state taxes 🙁


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