The IRS recently made two announcements that will impact your retirement planning. Here’s what you need to know:
1) The U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued information geared towards helping to increase the use of income annuities in 401(k) plans. Plan sponsors can now voluntarily include deferred income annuities in a target date fund used as a default investment, making it easier for employees to consider using lifetime income.
2) The IRS also announced that in 2015 retirement fund contribution limits will be bumped up to reflect cost-of-living increases. This comes on the heels of an announcement that social security benefits will increase by 1.7% to reflect cost-of-living increases.
Click on the chart below to see the changes and new opportunities you and your employees have to save more for retirement.
The Robin S. Weingast & Associates team is uniquely qualified to help you take advantage of the new annuity guidelines as well as the increased retirement plan limits. Contact us today and we can discuss restructuring your plan so that it is more advantageous for your taxes.