2014 was a great year and I hope 2015 will be just as good. Here are some updates from 2015 to our financial planning process. In 2015 the contribution limit to employees participating in a employer sponsored plan, (401k, 403b, and TSP) has gone up to $18,000 per year. The catchup contribution level also increased to $6,000. Meaning if you are over 50 you can save up to $24,000 per year. This equals out to an even $1,500 and $2,000 per month respectivealy.
However IRA and Roth IRA contribution levels remain the same $5,500 and $6,500 respectively.
The income limit to contribute to a Roth IRA has also gone up. An individual’s adjusted gross income has to be under $116,000 per year and for a married couple $183,000 per year.
Annual gifting limits will remain unchanged in 2015 at $14,000 per year.
All of these figures have been pulled off of the IRS’ website at irs.gov
No other major changes to limits on savings and please see your tax advisor for an update on any changes to the tax code.
What does this mean to you? Well you should talk to your financial advisor to see if you should invest more into your IRA’s and 401k’s or to see if it will make sense to use gifting strategies to pass money to some of your beneficiaries’.
I wanted to wish everyone the best in 2015 and if you have any questions about any of this please don’t hesitate to reach out to use at Fiat Wealth Management.