Florida Estate Planning and Probate Law Blog focused on recent case law and planning ideas.

2015 RETIREMENT PLAN CONTRIBUTION LIMITS

Traditional and Roth 401(k), 403(b) and 457(b) Retirement Accounts
These employer sponsored retirement accounts you to contribute up to $18,000 (up from $17,500 in 2014) per year if you are less than 50 years old or up to $24,000 (up from $23,000 in 2014) if you are 50 years old or older. Additionally, many employers match contributions and/or provide profit sharing contributions. The maximum contribution amount you and your employer (combined) can make per year is $53,000 (up from $52,000 in 2014), based on $265,000 (up from $260,000 in 2014) maximum considered compensation.
Simplified Employee Pension Plan Accounts (SEPs)
Employers can contribute up to 25% of an employee’s compensation. The maximum contribution an employer can make is $53,000 (up from $52,000 in 2014), based on $265,000 (up from $260,000 in 2014) maximum considered compensation.
Savings Incentive Match PLan for Employees (SIMPLE) IRA Accounts
SIMPLE plan accounts allow for contributions up to $12,500 (up from $12,000 in 2014) per year if you are less than 50 years old or up to $15,500 (up from $14,500 in 2014) if you are 50 years old or older. Additionally, employers are required to make contributions to your account on an elective or nonelective basis. The maximum elective match is 3% of compensation, not to exceed $12,500 (up from $14,500 in 2014) if you are less than 50 years old or up to $15,500 (up from $14,500 in 2014) if you are 50 years old or older. The nonelective contribution is 2% of compensation based on $265,000 (up from $260,000 in 2014) maximum considered compensation.
Traditional and Roth Individual Retirement Accounts (IRAs)
In lieu of or in addition to employer sponsored retirement plans, you can contribute to an IRA. You can contribute up to $5,500 (same as 2014) per year if you are less than 50 years old or up to $6,500 (same as 2014) if you are 50 years old or older. The Traditional IRA provides pre-tax or post tax contributions (based on your income and employer sponsored retirement plan status) and tax deferral. The traditional IRA provide an immediate tax benefit and a deferral of income taxes, while the Roth version foregoes the immediate tax benefit and provides tax free withdrawals.