For every dollar saved pre-tax, assuming a 30% tax bracket, $30 in taxes are saved. Uncle Sam has tightened his wallet as of late, so do not let unused tax savings fall by the wayside !
New IRS Maximum Pension Amounts
The 401k, a most popular option has a new top contribution limit of $24,000 for those 50 and over, including catch up and $18,000 for those below the age 50 thresh hold, in 2015.
- Contribute as much as you can, no matter this match, is USUALLY the best option (certain situations may be different)
- Spread those contributions evenly over the year
- Make your young 401k a beast
- If you are age 50 or older, be sure to use your extra $6000 catch up amount (may require contacting your plan administrator especially if you just turned age 50)
Here are the limits for multiple other retirement plans on our 2015 Tax Page!
Have a Great Day!
John A. Kvale CFA, CFP
PS Catching a Red Eye on Wednesday… talk to you from the plane!
