Posted by nerdwallet on January 7, 2015 by
The New Year is all about change and getting a fresh start, like setting personal resolutions to improve your physical and mental well-being. But our financial health often gets overlooked.
If you’re seeking to give your finances a new beginning in 2015, it’s vital to be aware of these three important financial changes that took effect at the start of the New Year.
1. Contribution limits on retirement, flexible spending accounts rise
Want to save more for your retirement in 2015? Well, you’re in luck: The contribution limit for a 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan has been increased to $18,000, a $500 bump from 2014. And if you’re age 50 or older (or turning 50 anytime before Dec. 31, 2015), you’ll be able to stash away an additional $6,000 as a catch-up contribution, a $500 increase from 2014.
What if you’re self-employed or a small-business owner with a Simplified Employee Pension (SEP) IRA? Good news: You’ll be able to contribute $53,000 to the account in 2015, a $1,000 boost from last year.
IRA contribution limits remain the same: $5,550 for total contributions to all of your traditional and Roth IRAs, or $6,500 if you’re age 50 or older. However, the contribution limit on a flexible spending account (FSA) — a tax-advantaged account that you put money into to pay for qualified out-of-pocket health care expenses — is now $2,550, a $50 increase from 2014.