2015 401k Contributions raised to 18,000

[iliketosavemoney]

Saw this over on another forum. They raised the limit on 401k to 18,000 in 2015.

http://www.irs.gov/uac/Newsroom/IRS-...-plans-in-2015

Looks likes IRA limits are staying the same.

[Zedon]

What does this mean?

"The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014."

If I make over $71k my traditional IRA contributions are still taxed or can I not even contribute to it?

[Like2Plan]

They sure don't have any love for the IRA's, do they? Wouldn't it be nice if they would make IRA contribution levels on par with the 401k's?

[disneysteve]

They sure don't have any love for the IRA's, do they? Wouldn't it be nice if they would make IRA contribution levels on par with the 401k's?

I've been saying that for years, at least for people who don't have access to a 401k account - which is true for about half of all Americans.

[autoxer]

What does this mean?

"The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014."

If I make over $71k my traditional IRA contributions are still taxed or can I not even contribute to it?

You could still make a non-deductible contribution, but at that point you are probably better off using a ROTH instead of a traditional IRA.

[rennigade]

Thats good news. They need to bump up ira's next!

[autoxer]

Thats good news. They need to bump up ira's next!

The IRA limits are indexed for inflation, but only change in $500 increments. If inflation is around 3% for 3 years, then we will probably see the limit go up to $6,000 for 2016.