Annual Individual 401(k) Plan Contribution Limitations To Increase for 2015 Taxable Year, According to IRA Financial Group

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In 2015, self-employed individuals and business owners can defer up to $53,000 and $59,000 if over 50 years old more

In 2015, self-employed individuals and business owners can defer up to $53,000 and $59,000 if over 50 years old more

The increase individual 401(k) plan contribution limitation for 2015 clearly demonstrates the importance the IRS has placed on retirement savings

IRA Financial Group, the leading provider of open architecture self-directed solo 401(k) plan documents announces that as of January 1, 2015, self-employed individuals and small business owners that have adopted an individual 401(k) plan for the 2015 taxable year will be able to make tax-deferral employee and employer contributions of up to $53,000, which is $1000 more than 2014. Self-employed individuals and small business owners, who are over the age of 50, will be able to make tax-deferral employee and employer contributions of up to $59,000 to their self-employed 401(k) plan, which was an increase of $1500 from 2014. “The increase individual 401(k) plan contribution limitation for 2015 clearly demonstrates the importance the IRS has placed on retirement savings,“ stated Susan Glass, a retirement tax specialist with the IRA Financial Group..

Under the 2015 Solo 401(k) contribution rules, an individual 401(k) eligible plan participant under the age of 50 can make a maximum employee deferral contribution in the amount of $18,000 to an IRA Financial Group self-employed 401(k) Plan. That amount can be made in pre-tax or after-tax (Roth). For the employer profit sharing component, the employer can make a 25% (20% in the case of a sole proprietorship or single member LLC) profit sharing contribution based off the participant’s self-employment income amount or W-2 number up to a combined maximum, including the employee deferral, of $53,000.

For plan participants over the age of 50, an individual 401(k) plan participant can make a maximum employee deferral contribution in the amount of $24,000. That amount can be made in pre-tax or after-tax (Roth). For the employer profit sharing component, the employer can make a 25% (20% in the case of a sole proprietorship or single member LLC) profit sharing contribution based off the participant’s self-employment income amount or W-2 number up to a combined maximum, including the employee deferral, of $59,000.

The annual individual 2015 401k contribution number consists of two parts, an employee salary deferral contribution and an employer profit sharing contribution. The total allowable contribution limits are combined to get the maximum Solo 401K contribution limit.

IRA Financial Group’s individual self-directed 401(k) plan is so popular because it is designed explicitly for small, owner only business. With IRA Financial Group’s self-employed 401(k) plan, self-employed individuals or small business owners with no employees can benefit by making high annual contributions – up to $53,000 - with an additional $6,000 catch-up contribution for those over age 50 for the 2015 taxable year. IRA Financial group’s self-directed individual 401(k) plan will all the plan participant to make traditional as well as alternative asset investments, such as real estate, precious metals, hard money loans, private business investments, tax liens, and much more as well as borrow up to $50,000 or 50% of their account value tax-free and penalty free for any purpose.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP and Dewey & LeBoeuf LLP.

IRA Financial Group is the market’s leading “Checkbook Control” Self Directed IRA and Solo 401k Plan provider. We have helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate tax-free and without custodian consent!

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

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Jaclyn Baily
IRA Financial Group, LLC
+1 (800) 472-0646 Ext: 9
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