Do you know how IRAs are changing in 2015?
Whole New IRA Option:
The name of the new option is “myRA” and it’s a Roth IRA account that isn’t connected to your employer. Fully guaranteed by the federal government, this account will be available to those with an individual income of less than $129,000 annually and will allow workers to contribute after-tax dollars through payroll deduction.
Increased Limits on 401(k) Contributions:
In 2015, you’ll be able to contribute $500 more toward your 401(k) account than you could in 2014. If you’re over 50 years of age, your catch-up contribution limit will also increase by $500. Maximizing your contributions allows your investments to grow more over time and decreases your income tax bill.
Higher Social Security Payments:
Due to the standard increase for cost-of-living expenses, those receiving Social Security benefits will see their payments go up 1.7 percent in 2015. However, the portion of your income that is subject to Social Security tax will also raise $1,500, or about 1.3 percent.
Tax Credits for Savers:
If you’re single and have an adjusted gross income of less than $30,500 per year, you can apply for a saver’s credit worth up to $1,000 in taxes (up from $500 in 2014) for contributing to your 401(k) or IRA. Just another incentive to put away money for your future.