Contribution Limits, Social Security, and Medicare for 2015

NWIC_logo 4As we start 2015 we wanted to make you aware of some changes in contribution limits for some retirement accounts as well as changes in Social Security and Medicare.

First of all, the contribution limit for 401(k)s will increase by $500 to $18,000. For those 50 and older the catch-up contribution also will increase by $500 to $6,000. The IRA contribution limit, however, did not change and will remain at $5,500 with those over 50 allowed to contribute an additional $1,000 for a total of $6,500. You will want to consult with your tax advisor to see whether contributions will be tax deductible if you are currently working and have access to a retirement account. Remember, you have until April 15th of 2015 to make 2014 IRA and Roth IRA contributions. If you would still like to make a 2014 contribution we encourage you to do this no later than April 1st to ensure all trades and settlements are done in a timely fashion if we need to raise some cash.

If you are currently a recipient of Social Security you will receive a 1.7% cost-of-living adjustment. Further good news is that Medicare Part B will not have an increase in premiums and will remain at $104.90 a month for 2015. However, Medicare Part A will increase from $1,216 to $1,260 in 2015 and most Medicare Part D premiums will likely increase by 4% to an average $38.83.

We hope this helps you in planning your finances for 2015 and as always please contact us if you have any questions regarding your wealth.