With tax season over, many Americans are looking to take advantage of every tax deduction they can find. One of the most common and efficient deductions is through a retirement plan. Retirement plan contribution limits have been raised and it is important that you take advantage of the new increased limits.
For most retirement plans such as 401(k)s and 403(b)s, contribution limits have been raised to $18,000 in 2015 (from $17,500 in 2014). If you are over the age of 50, the catch-up provision has been raised to $6,000 in 2015 (from $5,500 in 2014) which brings the total maximum contribution up to $24,000.
IRA contribution limits remain the same at $5,500 if you are under the age of 50 or $6,500 if you are over the age of 50.
A quick call to your benefits office may be worth the effort when filing your taxes for this year.
This article is written by Kevin J. McNab. Kevin works with professors, doctors, and university employees across the country as the leading Wealth Manager to clients in the academic, medical, and cultural fields. Kevin is President of McNab Financial, LLC and is a CFP®, ChFC®, and CRPC®. This article is not intended to contain investment or tax advice. Please contact your investment and tax professional to discuss investments discussed in this article. McNab Financial, LLC is a Registered Investment Advisor in the State of Colorado. Kevin McNab is The Professor’s Advisor!