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IRS Limits on Individual Contributions

Annual Gift Tax Exclusion

Every year, every person may gift up to $14,000 cash and/or other assets to an unlimited number of individuals free of transfer (estate) taxes.  For a married couple, the amount is $28,000.  These annual gifts are not counted against the persons $5,430,000 annual gift tax exemption. (2015)

Traditional IRA

AGI limits, tax filing status and participation in company sponsored retirement programs will affect deductibility. Please consult your tax advisor. The limit on contributions in  2015 is $5,500.  If you turn 50 in 2015 or before, you may also contribute a "catch-up" contribution of $1,000. 

Consult your tax advisor for your deducitiblity.

Spousal IRA

AGI limits and participation in a qualified plan by the other spouse affects eligibility, so be sure to consult your tax advisor.  Non-working spouses or working spouses not participating in a company-sponsored retirement program may contribute up to $5,500 per year to a deductible IRA.  Catch-up contributions apply. The AGI phase out is $183,000 to $193,000 for married couples filing jointly in 2015.  Non-deductible IRAs are available if AGI exceeds $193,000 in 2015.

Consult your tax advisor for your deducitibility.

Roth IRA

Allows contributions up to $5,500 and "catch-up" contributions up to $1000 for those 50 years and older for 2015.  Contributions are not tax deductible, but earnings grow tax-free and withdrawals are tax-free after five years if the IRA owner is 59 1/2.  Roth contributions may be withdrawn anytime free of taxes or penalties regardless of age.  AGI phase out is $116,000 to $131,000 for singles and $183,000 to $193,000 for married couples filing jointly in 2015. 

Consult your tax advisor for eligibility.


The 2015 limit is 25% of compensation ($53,000 maximum) to each employees account.  Self employed individuals that are unincorporated have lower limits, 20% of net business income less 1/2 the self-employment tax.  Consult your tax advisor.


The 2015 employee contribution limit is $12,500 or 100% of compensation.  Catch-up contributions for those 50 years and older is $2,500.  

401(k) Plan

Employees may defer up to $18,000 or 100% of compensation if earnings are less.  This is subject to plan limitations if written into the plan document at a lower amount.  Catch-up contributions are $6000 for those 50 and older in 2015. 

This information is not intended as tax or financial advice.  Consult your tax or financial advisor for more complete guidance based upon your particular situation.  Capitol Securities Management makes no guarantee as to the accuracy of the above information.  Limitations can change without notice.  Please consult IRS.Gov for complete information.

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