The amount that may be contributed to an IRA remains at no more than $5,500 in a traditional or Roth IRA. Wage earners age 50 or older can contribute $6,500. The maximum contributions for other retirement plans-401K, 403b, 457-is $18,000, with an additional $6,000 allowed for individuals 50+.
Many employers are now offering the new retirement account known as "myRA" or "my Retirement Account." MyRAs charge no fees and guarantee modest growth which may provide the necessary incentive for risk-averse people and those who are new to investing. In addition, you can start a myRA with just $25 and add as little as $5 each time. MyRAs are capped at $15,000 so when they reach that level, they must be rolled over into a private-sector Roth IRA.
Rules for rolling over IRAs are tightening. In the past it's been easy to "borrow" retirement money for up to 60 days. Taxpayers could take a withdrawal from one IRA and wait up to 60 days before rolling it into another IRA. As of 2015, taxpayers have just one such rollover in a 12-month period. However, "trustee-to-trustee" transfers can still occur as frequently as taxpayers wish without penalty.
The amount a person may give as a gift to another without filing a gift tax return is still $14,000.
The penalty for no health insurance is increasing significantly. In 2015, those without health insurance and who do not qualify for an exception to the penalty will pay $325 per person or 2 percent of household income. Even if you do qualify for one of the exclusions, be aware that some of the exceptions require that you apply for a federal or state certificate. Allow plenty of time to obtain the required exemption certificate number which you will need for your tax return.
New rules for Health Flexible Spending Accounts (FSAs). Although owners of FSAs who don't use all of their FSA amount by the end of the year can still roll over $500 of the account into the next plan year, the new rules state that they will then be ineligible to participate in a Health Savings Account (HAS) during the year of the rollover.
Employer-sponsored healthcare flexible spending arrangements (FSAs) increased to $2,550.
State or Medicaid payments for in-home foster care may be excluded from income. If you receive payment from a state or certified Medicaid provider to deliver non-skilled medical support services and care for a person living in your home who has a physical, mental or emotional illness, you can likely exclude those payments from your taxable income.
Pell Grants can now be allocated as living expenses. The result of this change may be an increase in the amount of education expense that you can use to claim one of the education credits.
