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The IRS
recently announced the new cost of living adjustments to the numerous annual
limits on retirement contributions.
These limits impact the amount of money you can contribute to a
retirement plan. This can have an effect
on how you formulate your estate and retirement planning in Tennessee.
The new 2015 annual limits for contributions
to a 401(k), 403(b), most 457 plans and the federal government Thrift Savings Plan
has increased from $17,500.00 to $18,000.00.
The helpful annual additional catch-up contributions to these plans,
available for those over 50 was also increased from $5,500.00 to $6,000.00.
The limit for contributions to an IRA (Roth
or normal IRA) is not changed for 2015 and remains at the $5,500.00 level. For those that take advantage of the Roth
IRA, the AGI (Adjusted Gross Income) phase-out level for the ability to contribute
was adjusted up for 2015. The phase-out
now begins at $183,000.00 for married couples filing jointly and $116,000.00
for singles and heads of household.
One other important thing to always remember,
is that you need to update and keep current your beneficiary designations on
your retirement accounts. In Tennessee, if
you have a proper beneficiary designation, these accounts pass outside of
probate. If you do not have any
designation or if you name your estate as the beneficiary, then this money will
pass through your estate in the probate process.
Follow me on Twitter at @jasonalee for updates from the Tennessee
Wills and Estates blog.
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