Clients need help with complex financial planning matters such as efficient wealth transfer, tax and inflation risk, and sustainable income in retirement. Financial-planning experts Bill Cass and Chris Hennessey weigh in each week with a range of insights, tips, and legislative updates.
2015 tax rates, schedules, and contribution limits
Chris Hennessey, December 11, 2014
Taxpayers may want to save more for retirement in 2015. The Internal Revenue Service announced higher contribution limits for 401(k)s.
The deferral (contribution) limit for employees who participate in employer-sponsored retirement plans, including 401(k)s increased to $18,000 from $17,500. Catch-up contributions for people age 50 and older went up to $6,000 from $5,500.
Retirement savings deferral limits are one of many data points outlined in Putnam’s 2015 tax rate chart. The resource is a useful reference to share with clients.