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.  

Contribution Limits201520142013
401(k), 403(b) and most 457 Plans$18,000$17,500$17,500
Catch up contributions for Age 50 and olderAdditional $6,000Additional $5,500Additional $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 olderAdditional $1,000Additional $1,000Additional $1,000

Remember: Do not let go that free money. Sign up for 401k account without delay if your company offers one.