Traditional and Roth IRA Contributions
For 2015, your total contributions to all of your traditional and Roth IRAs cannot be more than:
- $5,500 ($6,500 if you are age 50 or older), or
- your taxable compensation for the year, if your compensation was less than this dollar limit.
Roth IRA Contributions
Roth IRA contributions are limited based on your modified adjusted gross income (AGI)
- If your filing status is married filing jointly or qualifying widow(er), you can contribute up to the limit if you make less than $183,000. If your modified AGI is $193,000 or above, you cannot contribute to a Roth IRA. If your modified AGI falls in between these amounts, you can contribute a reduced amount.
- If your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time during the year, you can contribute up to the limit if you make less than $116,000. If your modified AGI is $131,000 or above, you cannot contribute to a Roth IRA. If your modified AGI falls in between these amounts, you can contribute a reduced amount.
IRA Contributions After Age 70½
You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.
Effect of Modified AGI on Deduction if You Are Covered by a Retirement Plan at Work
If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.
| IF your filing status is ... | AND your modified adjusted gross income (modified AGI) is ... | THEN you can take ... |
|
single or head of household |
$59,000 or less | a full deduction. |
| more than $59,000 but less than $69,000 | a partial deduction. | |
| $69,000 or more | no deduction. | |
|
married filing jointly or qualifying widow(er) |
$95,000 or less | a full deduction. |
| more than $95,000but less than $115,000 | a partial deduction. | |
| $115,000 or more | no deduction. | |
|
married filing separately |
less than $10,000 | a partial deduction. |
| $10,000 or more | no deduction. |
Effect of Modified AGI on Deduction if You Are NOT Covered by a Retirement Plan at Work
| IF your filing status is ... | AND your modified adjusted gross income (modified AGI) is ... | THEN you can take ... |
| single, head of household, or qualifying widow(er) | any amount | a full deduction. |
| married filing jointly or separately with a spouse who is not covered by a plan at work | any amount | a full deduction. |
| married filing jointly with a spouse who is covered by a plan at work | $178,000 or less | a full deduction. |
| more than $178,000 but less than $188,000 |
a partial deduction. | |
| $188,000 or more | no deduction. | |
| married filing separately with a spouse who is covered by a plan at work | less than $10,000 | a partial deduction. |
| $10,000 or more | no deduction. |
401(k) and Profit-Sharing Plan Contribution Limits
Deferral limits for 401(k) plans
The limit on employee elective deferrals (for traditional and safe harbor 401(k) plans) is $18,000 in 2015.
Deferral limits for a SIMPLE 401(k) plan
The limit on employee elective deferrals to a SIMPLE 401(k) plan is $12,500 in 2015.
Plan-based restrictions on elective deferrals
These restrictions may further reduce the maximum allowable elective deferrals:
- Your plan's terms may impose a lower limit on elective deferrals
- If you are a manager, owner, or highly compensated employee, your plan might need to limit your elective deferrals to pass nondiscrimination tests
Catch-up contributions for those age 50 and over
If permitted by the 401(k) plan, participants who are age 50 or over at the end of the calendar year can also make catch-up contributions. The additional elective deferrals you may contribute is:
- $6,000 to traditional and safe harbor 401(k) plans in 2015
- $3,000 to SIMPLE 401(k) plans in 2015
Compensation limit for contributions
Annual contributions to all of your accounts - this includes elective deferrals, employee contributions, employer matching and discretionary contributions and allocations of forfeitures to your accounts - may not exceed the lesser of 100% of your compensation $53,000 for 2015. In addition, the amount of your compensation that can be taken into account when determining employer and employee contributions is limited. The compensation limitation is $265,000 in 2015.
