What are the retirement plan limits for 2014 & 2015?

Here is a nice article written by Dimensional Fund Advisors:


The Federal tax laws can be saver friendly and allow most people a way to save money in a tax-deferred or tax-free environment. Here is a table of the contribution limits for some U.S. retirement vehicles:

plan limits 2.png


1 - Indexed for inflation after 2008; updated to reflect listed year's contribution limit


2 - Indexed for inflation after 2008 (updated for inflation); updated to reflect listed year's contribution limit


3 - $6,000 additional deferral available for 50 and over during the current tax year


4 - Defined Benefit Plans allow individuals to contribute over $115,000 to their retirement plan but you must have substantial income to do so. Please find out more, or download our white paper on defined benefit plans.


Note the changes are in bold, and the SEP and Owner 401(k) includes employee and employer contributions. The SEP & Individual(k) maximums are based on high-income, self-employed businesses. There are also special “catch-up” provisions that allow individuals over 50 to contribute higher amounts by the end of the tax year. If you are turning 50 in 2015, or will be over 50 in 2015, check with your benefits plan administrator to see if catch-up contributions (the extra amount for over 50) are allowed. The contribution deadline is April 15, 2015, for IRAs for 2014. Please contact us for further details.


This and other Frequently Asked Questions (FAQs) can be found on the Diversified Asset Management, Inc. Frequently Asked Questions page by CLICKING HERE.


Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.


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