401k Contribution Limits
401K Contribution Limits
Every Year, The IRS sets limits on the maximum amount you can contribute to your 401K and other retirement savings account. The limitations are changed based on the increase in the cost of living index. Its a good news for those who contribute to retirement savings plans. For the year 2015, the 401k contribution limits have been increased to $18,000. The following table illustrates various limits for 401k contributions for the last 3 years.
|401(k), 403(b) and most 457 Plans||$18,000||$17,500||$17,500|
|Catch up contributions for Age 50 and older||Additional $6,000||Additional $5,500||Additional $5,500|
|Total Max Contributions (Employee + Employer)||$53,000||$52,000||$51,000|
|Highly Compensated Employee||$120,000||$115,000||$115,000|
|Roth and Traditional IRA contribution limits||$5,500||$5,500||$5,500|
|Catch up contributions for Age 50 and older||Additional $1,000||Additional $1,000||Additional $1,000|
Remember: Do not let go that free money. Sign up for 401k account without delay if your company offers one.