Earlier, we shared about heath care flexible spending accounts and dependent care flexible spending accounts. Read that post. This is part two, address 2015 caps on Commuter Expense, IRA’s, 401(k) and 403(b) Accounts. Click on the type of account to learn more detail.
* Commuter expense account – $130 cap for public transportation, $250 for parking – Works the same as other flex spending accounts, but is used for commuting expenses.
* Individual retirement account (IRA) – $5,500 cap, plus extra $1,000 for people age 50 and older – Most workers are eligible for a $5,500 federal tax deduction for contributing. There are two types of IRA’s, Traditional and Roth.
* 401(k) and 403(b) – $18,000 limit, plus an extra $6,000 for people age 50 and older – Your employer takes pretax money from your paycheck and places it into an investment account; you pay taxes on the money when you withdraw it, typically in retirement.
Mid Oregon can help you set up your IRA. Visit one of our branches in Bend, Redmond, Madras and Prineville, call (541) 382-1795 or email firstname.lastname@example.org to get started.