Adjust your 2015 with holding

Tax Tip

Have you adjusted to the new year? That is, have you adjusted your tax planning to reflect the new year's increased limits on contributions to tax-favored accounts? These changes will affect your 2015 federal income tax return, and the sooner you incorporate them into your planning the more tax dollars you can save.

Here are some new contribution amounts for 2015.

Retirement plans. The 401(k) contribution limit increased to $18,000 this year. In addition, if you're turning 50 during 2015, you can add another $6,000.

SIMPLE plan contributions increased for 2015 also. You can put up to $12,500 in your SIMPLE account this year, plus another $3,000 if you're age 50 or over.

Contributions to employer-sponsored retirement plans reduce your taxable income because your employer deducts amounts you specify from your paycheck before taxes. You might also be able to benefit from a "savers" credit of up to $2,000.

Health savings accounts (HSAs). For 2015 you can contribute up to $3,350 to your HSA when you have a qualifying health policy offering individual coverage. The contribution limit is $6,650 for family coverage. If you're age 55 or over, you can add an additional $1,000.

An HSA is a special savings account that offers a tax-advantaged way to offset your medical expenses. You can make tax-deductible contributions to an HSA when you purchase a qualifying health insurance policy. Your contributions are deductible even if you don't itemize.

Give us a call for updates on other tax-sheltered accounts offering significant breaks for 2015.

Joseph C Becker
Ten Forty plus Quality Tax Preparation & Financial Services
www.tenfortyplus.com
281-397-7777, Fax 281-397-7443
joeb@tenfortyplus.com