04 Dec Important Retirement Fund Changes Coming to Social Security in 2015
Every year millions of Americans rely on the bevy of retirement fund options they’ve accrued in planning and preparation. While retirement funds are supposed to be solid foundations of reliable income mostly protected from external market fluctuations, new governmental policies and legislation have significant impact on your bottom line. It’s important to realize that any changes in Social Security, 401k, Medicare, and IRAs will always have a very real implications for every retiree; however, in today’s new economy, changes and their effects are more easily and quickly felt.
2014 is coming down to the final weeks and new tax changes will take effect. How will new changes affect your retirement fund options?
Social Security Increase
This is good news for all retirees. Those receiving benefits will see a 1.7% increase in payments each month due to a cost-of-living adjustment starting in 2015. If you’re still working, your tax rate will remain the same at 6.2%. An important point to note is that the taxable limit on Social Security wages will also increase from $117,000 to $118,500.
Medicare Increase on Deductibles
If you have Medicare, you’re probably familiar with its different parts: A, B, C, and D. While not all Medicare parts are seeing fresh changes this coming year there are a couple that are. The part B plan rate will remain fixed as well as it’s deductible; however, if you’re receiving assistance for inpatient services, you’ll be paying a larger deductible. Part D plans will see premium increases as high as 4%.
401k Retirement Contribution Increase
Your 401k retirement contribution will see its limit increase by $500 – from $17,500 to $18,000 in 2015. The overall “catchup” contribution limit affecting workers 50 and up will also increase $500 – from $5,500 to $6,000. So, if you’re bit behind in your retirement planning – take note.
New IRA Limits
Your annual IRA retirement fund contribution will remain fixed at $5,500 in 2015. If you have a 401k you can contribute to an IRA to receive tax advantages – as long as your income remains within certain limits. The new limits will increase by roughly $1000 – $2000 from last year. Additional IRA limit changes will affect individuals and married couples alike.
We’ll help you navigate Retirement Fund Changes in 2015
Change is always uncomfortable and difficult to adjust to. Luckily, this coming year’s tax changes are not all a burden and can actually help you if plan properly and take action. Knowledge is power and here at Reliance Retirement we want you to make the most informed decision about your investments. If you need help planning for retirement in 2015, contact us or sign up for one of our informational seminars today.