More Ways to Save Money in 2015 – Forecast of Changes to IRAs
Published on January 6, 2015
As people hasten to bolster their contributions before the year is over, Next Generation Trust Services is looking ahead to 2015 at some big changes to IRAs that are coming.
MyRA
A MyRa is a unique Roth IRA account is available to individuals with annual income (individual income, not household) of under $129,000. Workers will be able to contribute after-tax dollars through a payroll deduction, but this account is not connected to the employer. This arrangement is meant to make saving for retirement as easy as possible for many people.
These retirement accounts invest in government bonds with a guaranteed return of principal because the money will be invested in a government bond fund set up for just this purpose. Initial contributions can be as small as $25 and $5 per pay period after that. The principal may be withdrawn without penalties. The program could appeal to part-time and other workers who don’t have access to retirement accounts at work (such as 401K plans).
Increased limits on 401(k) contributions:
The contribution ceiling will go up by $500 toward your 401(k) account in 2015; workers over 50 years of age will also enjoy a $500 increase in their catch-up contribution limit.
You can see a chart that compares contribution limits for 2014 and 2015 on this blog post.
Higher Tax Credit for Savers
Single individuals with adjusted gross income of less than $30,500 can apply for a saver’s tax credit. New in 2015 is that the credit will be worth $1000 in taxes, up from $500 in 2014.This credit is available to qualified individuals who contributed to a 401K or IRA.
Increased COLA in Social Security benefits
Social Security is boosting benefits slightly due to the standard increase for cost of living expenses. The good news: People will see an increase of 1.7 percent in their checks in 2015. The not-so-good news: the portion of your income that is subject to Social Security tax will also go up about 1.3 percent.
Whether you are saving for retirement in a regular IRA or are choosing to control your retirement investments through self-direction, Next Generation’s knowledgeable employees are available to answer your questions about retirement plans. Of course, as specialists in self-directed retirement plans, we can also help you open a self-directed IRA, HSA or Coverdell account so you can include alternative assets within your retirement portfolio. Our Starter Kits for any type of retirement plan you wish to open have the information you need; or contact our staff for more information: Info@nextgenerationtrust.com or (888) 857-8058.
