Anybody on the internet can browse our website determine that we put out a fair amount of content: weekly blogs, monthly articles and a quarterly magazine. Our clients know that we also put out a “weekly flash report” with highlights on the week’s top stories. This week, our flash report noted the change in IRS contribution rules, but when the message is condensed into a single PowerPoint slide, it’s a little hard to read. Specifically, the text from the weekly flash report reads:
IRS increases contribution limits for 2015. Elective deferral moves from $17.5K to $18K. Age 50+ cash up moves from $5.5K to $6K. DC 415c plan limit moved from $52K to $53K. Annual 401(a) compensation limit moved from $260K to $265K.
This information is certainly all true, but it lacks the explanation and supporting text that makes the new rules legible, even to reasonably engaged investors. We can remedy all this here.
Here are the facts, direct from the IRS:
One other quick observation: Cost of Living Allowances are being boosted slightly. Social Security payments are going up 1.7% next year (about $264 per year), mirroring the change to CPI.