##ira limits can be broadly divided into two kinds: one connected to the income of the household and the other concerned with dollar value of contributions themselves. The IRA contribution limits have seen recent changes in 2014 and 2015.
Contributions to IRA
For a number of years, the limit on contribution to an IRA was fixed at $2,000. However, it was soon realized that the old restriction was inadequate as it didn’t factor in inflation when satisfying people’s retirement planning requirements. This is the reason changes were made in 2014 and 2015. A catch-up limit was also incorporated to assist account holders fund their #iras late if not never.
Here are the #roth IRA contribution limits 2015: The following sections will demarcate IRA contribution limits applicable to traditional IRAs, #simple IRAs and roth IRAs. If the contribution or limit rule for a specific program is not mentioned, it will be safe to assume that the rule applies to all three types of IRAs.
IRA contribution limits applicable for 2015
The contribution limits applicable to traditional and Roth IRAs in 2015 is $5,500. If anyone touches 50 years of age prior to the end of the calendar year, he or she is entitled to an extra catch-up contribution amounting to $1,000. The total contribution limit thus tots up to $6,500 for any person who is 50 years of age or older by 2015 end.
Traditional IRA limits on income for 2015
The MAGI or modified adjusted gross income contribution limits applicable to traditional IRAs went up in 2015. Account holders who are covered by any retirement plan in their place of work will see the tax deductible contribution phased out of traditional IRA in cases like:
- The holders’ filing status shows married filing jointly. Other factors include AGI of more than $98,000 and less than $118,000.”
- The filing status shows head of household or single and AGI exceeds $61,000 but is less than $71,000
For taxpayers who are married and filing separate returns, the minimum deductible phase outs begin from $10,000.
Roth IRA limits on income applicable for 2015
The rules applicable to income limits for Roth IRAs in 2015 are:
- Single filers having modified and adjusted gross income with a limit of $116,000 can make full contributions. In case the adjusted gross income exceeds $131,000, they will be barred from making contribution to Roth IRA.
- Joint filers having modified and adjusted gross income with a limit of $131,000 can make full contributions. In case the adjusted gross income exceeds $193,000, they will be disallowed from making contribution to Roth IRA.
Contribution limits for a SIMPLE IRA in 2015
The employer contribution in 2015 has increased to $12,500. In case of salaried workers aged 50 or older, employers can make an extra “catch-up” contributions amounting to $2,500. This brings the total contribution limit for 2015 to $15,000. In contrast, the employer contribution in 2014 was $12,000 and the limit on total contribution was $14,500.