One of the most fundamental aspects of tax planning for many people is maximizing the tax-shielding features of their retirement savings. This includes pensions, 401(k)s and individual retirement arrangements (IRAs).
There are of course very specific rules about the tax treatment of these accounts. These rules govern contributions, withdrawals and other administrative aspects of the accounts.
These rules have never included overall limits on the amount that can be accumulated in an IRA account. But as we discussed a few weeks ago, in our October 1 post, Congress has recently been considering imposing such limits.
In today’s post, we will update you on a different aspect of IRAs: cost-of-living adjustments for the upcoming tax year that will affect such things as yearly contribution limits for 401(k)s and other retirement accounts.