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Thursday October 30, 2014

Washington News

Washington Hotline

401K Limit Increased to $18,000 for 2015

Each October the IRS publishes the increased limits for retirement plans for the following year. In IR-2014-99, the Service increased 401(k) and 403(b) contribution limits from $17,500 this year to $18,000 for 2015.

Employees who are age 50 or older may also benefit from an additional “catch-up” contribution. The limit for 2015 has been increased from $5,500 to $6,000. The total employee contribution for those age 50+ could be $24,000 next year.

Because many employers have 401k matching programs, the total contribution could be substantially higher. For example, with a $1 employer match for each $2 of employee contribution, an employee over age 50 may benefit from up to $36,000 of total contribution in 2015.

The regular IRA contribution of $5,500 is unchanged. Similarly, for an IRA the $1,000 “catch-up” amount for persons over age 50 is also the same next year.

Many other retirement fund limits also have increased.

1. IRA Phaseouts – If an employee is covered by a workplace plan, the single person phaseout is from $61,000 to $71,000. The married couple phaseout is from $98,000 to $118,000.

2. Roth IRA Phaseouts – The option to use a Roth IRA phaseout for a single person is at $116,000 to $131,000. The married person Roth phaseout is $183,000 to $193,000.

3. Retirement Savings Tax Credit – The benefit for low and moderate income persons has a single person limit of $30,500 and a married couple limit of $61,000.

Editor’s Note: There are increases in many of the other retirement plan provisions. These include total compensation considered, employee stock option plan limits, SIMPLE retirement plan limits and other various retirement-related amounts.

Published October 24, 2014
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Beneficiary Designations Language

All beneficiary designations should be made to "the Board of Regents of The University of Texas System for the use and benefit of The University of Texas Health Science Center at San Antonio. This gift shall be used for the further benefit of [College, School, Department] and shall be used to _________________."

View and download:
   Sample Bequest language
   Sample Beneficiary language
   Estate Intention Letter

Charitable Gift Annuity
Single Rates from the American Council of Gift Annuities

Age Rate
60 4.40%
65 4.70%
68 4.90%
70 5.10%
72 5.40%
74 5.70%
76 6%
78 6.40%
80 6.80%
82 7.20%
84 7.60%
86 8%
88 8.40%
90 9%

CGA's are also available for two lives and can be deferred

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Office of Institutional Advancement, MC – 7835
7703 Floyd Curl Drive
San Antonio, Texas 78229-3900
Phone: 210-567-5001 | Fax: 210-567-3156
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