According to Money Magazine:
The cap on annual contributions to a traditional and Roth IRA, which hadn’t changed since 2013, will rise to $6,000 from $5,500. The catch-up contribution to these accounts for those ages 50 and over remains unchanged at $1,000, according to the IRS. Employees who participate in a 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will be able to set aside up to $19,000 before taxes next year, up from $18,500.
The option to put an extra $500 each into an IRA and a 401(k) might not seem like all that much. But it could save investors big-time in the long run. For someone who starts contributing at age 30 and retires at age 67, the extra $1,000 a year adds up to an additional $134,000 in retirement savings at a 6% return, according to Arielle O’Shea, an investing and retirement specialist at NerdWallet.
That’s good news from the IRS. Sterling Accounting can help you make sure you will get more good news on the tax front.
As we point out on our website:
Whether you need a simple 1040EZ tax filing or a 1040, we can handle it all for you. We provide innovative solutions for tax issues to minimize your tax liability, we find deductions commonly overlooked, and we stay up-to-date and well informed on all tax laws and legislation. It’s good to also remember that tax season comes around once every year, so good planning throughout the year is important to mitigating your tax exposure, allowing you to keep ore of what you earn! It’s a delicate balance that exists between optimizing your after-tax income and minimizing your pre-tax dollars. We offer advice on both short-term and long-term tax strategies, initiatives and investments. Our tax service is designed exclusively to help you maximize your earning power!
Sterling Tax and Accounting Services are specialists in handling all forms of tax matters for small, medium and large businesses of all kinds. We also help businesses identify often overlooked tax deductions.