A rundown of the big & little alterations coming next year.
2015 will bring COLAs, changes & something new. Each year, the retirement benefits landscape looks a little different, and next year is no exception. Here’s a look at what will change, what might develop, and even what won’t change for 2015.
The 401(k) contribution limit expands $500 to $18,000 next year. The catch-up contribution limit for plan participants 50 and older also rises by $500 to $6,000. If you are in the 25% tax bracket and put $18,000 in your 401(k) next year, you will save $4,500 in 2015 federal income taxes as a result. That tax savings comes with a regular 401(k), not the Roth version.1