The IRS announced new retirement plan limits which go into effect starting in 2015. These changes affect individuals who plan on making contributions to qualified retirement plans.
The contribution limits for 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,500 to $18,000 per person. Additionally, catch-up contributions (available for individuals age 50 or over at the end of the year) for these plans will be increasing from $5,500 to $6,000.
IRA contribution limits will remain unchanged at $5,500, with a maximum catch-up contribution of $1,000.
Discuss with your advisor about if you should take advantage of this new increase to help lower your taxes and save additional funds for your retirement.