Do you know everything you need to know about your 2015 IRA Contribution Limits? Did you know the IRS changed these limits from 2014? Federal regulations that cover annual Roth, Traditional, Simple and SEP IRAs, your overall 401k limits, as well as income limits for all accounts are in flux.
Each year, the IRS changes the rules governing individual retirement accounts, so it is important to stay current on the new regulations for your IRA, especially when opening a Roth IRA.
Two sets of Rules. The rules that govern your annual maximum contribution to your individual retirement account depend upon your age: one set of regulations if you are under 50 this year, and another set of rules if you turn 50 or older this year.
If you are under 50 in 2015, the maximum IRA limit for contributions that you can make is five thousand five-hundred dollars, up to the amount you made in taxable income this year. So if you only made four thousand dollars this year, this is the maximum you can contribute. This applies to both traditional and Roth IRA limits.
If you turn 50 or older this year the most you can contribute to your individual retirement account is six thousand five-hundred dollars, up to but not exceeding your 2014 taxable income. This amount includes the five thousand dollar limit that everyone qualifies for, as well as an addition one thousand catch-up contribution. Income limits apply!
In 2014 the annual limit for your IRA contribution was five thousand five hundred dollars, for those 50 and under. If you were over 50 in 2014, the catch-up contribution rules increased your maximum limit to six thousand five hundred dollars.
Maximums for Roth IRAs are the same, but keep the following in mind. The rules above apply to both traditional and Roth IRAs. If you have both types of accounts, it is important to know that the annual limits above apply to combined contributions. So for example, if you are under 50, you can invest two thousand dollars into your traditional IRA and up to a three thousand five-hundred maximum into your 2015 Roth IRA, or any other combination as long as the total doesn’t exceed five thousand five-hundred dollars. If you are over 50, any combination of investment up to six thousand five hundred dollars is allowed by the federal government.
Upper income limits also apply! Read about Roth IRA Rules for 2015 for more information on these restrictions. (for Traditional IRA limits, see below.)
Essential Individual Retirement Account Information:
1. 2015 Traditional IRA Income Limits. The federal government places upper limits on how much you can contribute to a traditional IRA, which varies from individual to individual. The limits are based on age, tax filing status and your modified AGI – or your adjusted gross income. Read about the 2014 – 2015 traditional IRA income limits for more.
2. Deadlines – The IRS places different deadlines for each type of retirement account. Missing the deadline can prove costly to your savings and the growth of you funds. Find your 2014 Individual Retirement Account IRA deadline information in our master mega document.
3. SEP IRA Contribution Limits. SEP-Individual Retirement accounts are usually intended for sole-proprietorship business owners. These accounts have their own regulations for contributions and income limits, which most find extremely complex. Read about SEP Maximums for 2015.
4. Simple IRA Contribution Limits. Despite their name, most people find Simple IRAs anything but simple. These are great plans with higher limits, so be sure to take advantage of the increased maximums. Learn more about Simple IRA Limits for 2015 and 2014.
5. The IRA Contribution Cheat Sheet – We’ve made it simple to understand the 2014 IRS rules for your retirement account using a single document. Email the 2014 IRA Cheat Sheet to clients, print it to hang on your wall, or embed the graphic on your own website or blog.