- The IRS just announced new incentives to help those saving for retirement combat inflation.
- Starting in 2015, retirement plan participants will be able to contribute up to $18,000 annually to their 401(k), 403(b), Thrift Savings Plans and most 457 accounts.
- Savers age 50 and over will be able to contribute up to $24,000.
Great news for disciplined savers. The IRS is giving you a break. OK, it’s an incentive, really, but still good news for those who are consistently saving for retirement—or hoping to get back on track.
In a move to help bolster retirement plan savings and keep good on a pledge to periodically adjust for inflation, the IRS has increased 401(k) contribution limits for 2015. In plan year 2015, retirement plan participants will be able to contribute up to $18,000 to their 401(k), 403(b), most 457 plans and Thrift Savings Plans (for federal employees). Savers age 50 and over will be able to contribute up to an additional $6,000 in catch-up contributions. This ups the annual total including catch-up contributions to $24,000. IRA annual limits will remain the same in 2015 however, at $5,500 with catch-up contributions for those over 50 at $1,000.
This article by Motley Fool’s Chuck Saletta is a powerful reminder about why investing in your retirement plan is so important.
If you have questions about a 401(k), other retirement plan, or bringing clarity to your financial goals, please contact me to have a discussion.