DETROIT – Now that many people have burned through their budget for holiday gifts, it’s time to start thinking about setting some new savings goals in the new year.
The federal government is offering tax deferred incentives to not spend and instead save for retirement. The IRS has new savings limits for qualified plans like the 401(k) and 403(b)’s and the 457 retirement plans. You will now be able to save $20,500 -- that’s up from $19,500.
Saving that much will reduce your income for the year. You pay the taxes when you take money from the account, usually after retirement.