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FREE CONSULTATION818-436-2775
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How Retirement Benefits Will Change in 2015

Whether you calculating retirement benefits in 2015are new to the work force or looking to soon retire, it is important that you understand your retirement benefits. By staying abreast of the changes that are being implemented, as well as how different agencies, such as Los Angeles accounting firms, can assist you in the process, you will be best able to position yourself to profit from the shifts.

Social Security

Social security benefits will increase by 1.7% due to adjustments for annual cost of living. To account for this adjustment, the maximum taxable earnings amount will increase from $117K to $118.5K.

Medicare

High-income beneficiaries will pay more into Medicare next year. Some plans and their deductibles are expected to increase. Check with your state regulations to see if your plan will be affected, and compare your options during the open enrollment period to ensure that you get the best value for your money.

401(k)s

401(k) contribution limits will increase in 2015. This can prove to be very beneficial to those individuals who may be able to receive tax deferral from the savings. Those with a 401(k) or IRA may also be eligible for a saver’s credit.

IRAs

IRA contribution limits will remain the same, however individuals that are age 50 and older will be able to contribute an extra $1K as a catch-up contribution. Also, possible tax deductions will increase depending on your tax bracket. Consult one of your local Los Angeles accounting firms to determine how you can best capitalize on your deductions.

New Retirement Accounts

The Treasury is expected to introduce a new retirement plan called the myRA. Basically it will be a Roth account that is portable and funded with after-tax dollars through payroll deductions.

As these changes are implemented for retirement benefits, it is important that you have a full understanding of how it will affect you. Contact local Los Angeles accounting firms in ATPP to see how you can utilize these changes for your advantage and set yourself up for a peaceful retirement.