Retirement Plan Changes You Need to Know About for Next Year – MainStreet

If you’re starting to think about your New Year’s resolutions, investing efficiently in your financial future is always a good one to consider. It’s never a waste of your time to understand where your money is going and how you can save for your retirement in the most effective way. So do not let changes in the small print run away with your hard earned cash. We took a look at some of the retirement plan alterations and initiatives you should be aware of for 2015. myRA is a brand new IRA option available in 2015. It’s not linked to an employer sponsored plan and is available if you have an income of less than $129k per year. You can invest after-tax dollars through payroll deduction. Next year you can up your 401(k) contribution by $500. if you’re over 50, you’ll get another $500 limit raise on top of that. Maximizing your contributions will allow your investment to grow over time. Retirees will earn a 1.7% cost-of-living pay raise via their Social Security benefits next year. Although, be aware that the portion of your income subject to social security tax will also raise about 1.35%. Americans who are single and earn less than $30,500 may be eligible for a 2015 tax credit. Definitely worth knowing about as it’s valued at $1,000 this year. You can stash the cash tax-free in your 401(k) or IRA plan. So this new year make sure you commit to getting up to speed with these retirement plan changes. Don’t leave it too late to miss out.

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