Tax law doesn’t always stay the same from one year to the
next. So, as can be expected, there are a few changes happening in 2015. Many
of these changes can mean good things for you providing you are aware of them,
understand if and how they relate to you, and do what you need to do so that
these changes go over smoothly.
The myRA
A brand new type of retirement fund is coming in 2015. It’s
known as the myRA and comes with one pretty amazing feature: it will never lose
its value! People can pay into their myRA accounts, which can be opened for as
little as $25, by automatic payroll deductions. The best part is that myRA
funds are contingent upon a person’s job, so even if you end up starting a new
job, you can still keep your myRA. However, there are income limitations, with
those in higher income brackets typically not being eligible to open a myRA.
Check with your financial advisor to see if you are eligible to open a myRA and
if doing so would be beneficial for you.
A Spike in Contribution Limits
Have you ever wished that you could contribute more money to
your retirement account? Well, guess what- now you can. Contribution limits
have been significantly raised for several different types of retirement
accounts, including:
l 457
plans
l Thrift
Savings plans
Some restrictions do apply, however, so speak with your
financial advisor about what these higher contribution limits might mean for
you. Also, bear in mind that IRA contribution limits are not affected by these
new regulations though IRA income limits are rising.
In terms of changes among other types of retirement
accounts, Roth IRAs will have higher income cut-offs in the coming year.
Saver’s Credit Threshold Increased
Since their inception, saver’s credits of up to $2000 have
been offered for those who meet certain income restrictions and who contribute
to an IRA or 401(k). The good news is that some people who previously made too
much to qualify for a saver’s credit may find themselves eligible this year,
since the credit threshold has increased by up to $1000.
It’s easy to see that there are lots of positive changes on
the horizon in 2015; make sure you make the most of them!
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