It seems every year there are a few new tax laws that we need to pay attention to. Not knowing these new laws can cost you a lot of money. You can lose out on any tax savings they offer, but you can also be penalized if you aren’t following a current tax code. Here are 2 areas where new laws for 2015 have been passed that you need to be aware of.
One new law has to do with taxpayer contributions to 401ks, 457s, 403b plans and the federal Thrift Savings Plan. A taxpayer is now allowed to contribute $18,000 a year to these plans. That can be a big savings for you. And if you are over 50 in 2015 you can contribute $24,000.
There are also new salary limitations on contributions to IRA and Roth IRA accounts. For those who are single, have a work pension plan and contribute to an IRA account, the new limit on adjusted gross earnings is over $61,000 but under $71,000. For married couples the amount is over $98,000 but under $118,000. Roth accounts are seeing their limits raised by $2000. That puts a limit on singles of over $116,000 but not more than $131,000. For married couples those limits are over $183,000 but not more than $193,000.
One last thing regarding IRA accounts, if you are investing, you are limited to one “indirect” roll over in a 12 month period. Indirect rollovers occur when the account owner takes the sum and rolls in into a different IRA account. There are penalties and additional taxes if more than one IRA is rolled over. There are no limitations on rolling over accounts between trustees, however.
The next new law has to do with Health Expense Accounts. Prior to 2013 the pre-tax health expense accounts were able to have $500 rolled over to the following year. Not anymore. Any money in a health expense account must be used in that calendar year. If you had money left over from 2014 you will be ineligible to participate in this health expense account in 2015. The amount you can contribute to this kind of account has risen slightly. You can now contribute up to $2550 a calendar year, which is up $50.
These new laws may seem confusing. As with any type of law question, when in doubt, consult an attorney that can guide you through all the legal loopholes and make this process an easier one for you.