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Asset Preservation Advisors




City:Atlanta

State: GA



BIOGRAPHY:
APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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How Will New IRS Pension Plan Limitations Affect Your Saving for Retirement?

People know the importance of saving for retirement, but daily financial pressures and obligations can defer the best laid retirement savings plans.

| BY Donald Liebenson

People know the importance of saving for retirement, but daily financial pressures and obligations can defer the best laid retirement savings plans.

A 2014 Spectrem’s Millionaire Corner survey of Affluent households found a tendency to put saving for retirement on the back burner while attending to more immediate financial needs, such as paying for college, caring for an aging parent, an unexpected major expense, supporting an adult child or covering day-to-day obligations in the event of job loss.

As challenging as it may be to save for retirement, new guidelines recently issued by the Internal Revenue Service will allow employees to contribute more to their employer-sponsored 401(k) retirement plans.

The maximum contribution for the government’s Thrift Savings Plan, private sector 401(ks and other comparable programs for employees has been raised to $18,000, an increase of $500 from 2013 and 2014. For contributors over the age of 50, the “catch-up’’ contribution maximum has also been raised $500, from $5,500 to $6,000. For contributors either approaching or at retirement age, this means they can can max out at a contribution of $24,000 annually. For small business owners and self-employed workers that invest in a SEP-IRA or a single 401(k), the 2015 annual contribution limit increases $1,000 to $53,000.

In other changes announced by the IRS, the deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $98,000 to $118,000, up from $96,000 to $116,000.

 For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $183,000 and $193,000, up from $181,000 and $191,000.  For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.



About the Author


Donald Liebenson

dliebenson@millionairecorner.com

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.