Do you make a New Year’s resolution to better manage your money in 2015? If so, we hope retirement savings will be a part of your plan. Retirement products continue to evolve, and it is important to understand how these changes will help you achieve your goals. The following are some of the changes to retirement savings in 2015:
1) myRA – There is a new Roth IRA account that is not connected to an employer. The program is available to individuals making under $129,000, and is fully insured by the federal government. Employees make make after-tax contributions through payroll deduction.
2) Increased Contribution Limits – In 2015 you may contribute $500 more to your IRA than in 2014. If you are over 50, your catch-up contribution can be upped by $500 as well.
3) More from (and to) Social Security – If you are currently collecting social security, your benefits will go up by 1.7%. However, if you are contributing to social security, the percentage of your taxed income has gone up by $1,500, or about 1.3%.
4) Increased Credit for Saving to Your IRA – Individuals with a gross income of under $30,500 per year can apply for a saver’s credit of up to $1,000 in taxes for saving to their IRA or 401K. This credit is up from $500 in 2014, and can serve as a great incentive to save toward your retirement this year.
Questions on how to plan for your retirement? Send us an email, or give us a call at 317.663.4138