2015 Allowable Tax and Retirement Benefits

By Mike Alread

I thought it would be a good idea to highlight the 2015 Allowable Tax and Retirement Benefits that have been approved by the IRS. You should review your contributions and deductions each year to take advantage of any changes. Here are some of the most popular, but this list is certainly not exhaustive.

Maximum 401(k) Employee Contribution:
 If younger than 50 – $18,000 (up from $17,500 last year)
 If 50 or older – $24,000 (up from $23,500 last year)

Deductible IRA Contribution: If taxpayer and spouse are NOT covered by employer-sponsored plan.
 If younger than 50 – $5,500
 If 50 or older – $6,500

SIMPLE Maximum Contribution:
 If younger than 50 – $12,500
 If 50 or older – $15,500

SEP Maximum Contribution:
 $53,000

Self-Employed Medical Insurance Premium Deduction:
 100%

Annual Gift Tax Exclusion (per person):
 $14,000

Estate Tax Exclusion:
 $5.43 million

Personal Exemption:
 $4,000

Maximum Child Tax Credit:
 $1,000 per child under age 17 at the end of the year

Again these are some of the more popular deductions/tax benefits that we see on a regular basis. One thing I would strongly recommend is that if your employer offers an employer match in your retirement plan, then you should contribute at least enough to capture that full amount. Not contributing enough is walking away from “free” money. Hard to beat free! 

If you have any questions or would like us to review your retirement plan, insurance or investments, please contact us.

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