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PENSCO Blog

Fresh alternative asset insights and the latest news on real estate and private equity investing.

Good News Regarding IRA Contributions in 2015

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  |  By Joseph Adams

When the IRS released its 2015 pension plan adjustments late last week, it left the contribution limits for traditional and Roth IRAs unchanged at $5,500. The agency said the cost-of-living thresholds that trigger such an adjustment were not met.

However, there were some changes that will impact many IRA account holders (including those with self-directed IRAs). The IRS is increasing many of the income levels that are used to determine who gets a full deduction on their IRA contributions. The upshot? In 2015, you'll be able to earn a bit more and still deduct contributions to your IRA.

Here’s the scoop:

Deductible IRA changes:

  • Under the IRS guidelines for 2015, the deduction for taxpayers making contributions to a traditional IRA will be phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000 -- up from $60,000 and $70,000 in 2014.
  • For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is being raised to $98,000 to $118,000, up from $96,000 to $116,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction will be phased out if the couple’s income is between $183,000 and $193,000, up from the current range of $181,000 to $191,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Roth IRA changes:

  • In 2015 under the new guidelines, the AGI phase-out range for taxpayers making contributions to a Roth IRA will be raised to $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 this year.
  • For singles and heads of household, the income phase-out range will be $116,000 to $131,000, up from this year's $114,000 to $129,000.
  • For a married individual filing a separate return, the IRS said the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

All of the changes that the IRS outlined for 2015 can be found here.

A quick glance at the lengthy release makes it pretty clear that the rules of retirement savings are always changing. Here at PENSCO, we believe it's more crucial than ever to stay on top of these changes and take an active interest in your retirement strategy, perhaps thinking about your nest egg in an entirely new way. As a leader in the self-directed IRA industry, we help our clients take control of their retirement strategies by using IRA dollars to invest in non-exchange traded assets such as real estate, private equity and other alternative investments. Learn more about how alternatives can be a part of your retirement strategy.