IRAs and 401(k) are incredibly popular employer offered retirement plans. Many employers currently offer them and with the recent passage of the SECURE Act legislation, even more small businesses and enterprises will be able to offer such benefits to employees. However, IRAs and 401(k)s do have contribution limits, which can be on the lower side–especially for IRAs. Thus, if you find yourself in a situation where you want to do some serious catching up (aside from making catch-up contributions) with your retirement savings or have a sudden windfall (i.e. an inheritance), you may need to look at opportunities to help Continue reading Looking to Grow Your Nest Egg Beyond an IRA or 401(k)?
The IRS recently announced retirement account contribution limits for 2020. The quick take away: 401(k) contribution limits are going up, IRA contribution limits stay the same, and just about all other retirement account contribution limits are also going up. Per usual, the increases are minimal. The 401(k) contribution limit is up $500 to $19,500, while the catch-up contributions will increase to $6,500 from $6,000 last year. IRA contributions remain topped out at $6,000 with a $1,000 catch-up contribution for those over 50. Contribution limits have been increasing just about every year in recent memory, so these should really come as Continue reading 2020 Retirement Limits: Some Things Go Up, Some Stay the Same
Yesterday, I talked about how the IRS has increased contribution limits for Roth IRA by $500 for 2019. Well, it’s not just Roth IRAs that are getting a contribution limit bump, so too are 401(k)s and similar employer retirement plans. The increase is, again, $500, but it’s still better than nothing. This means that you can contribute up to $19,000 to an employer 401(k) if you are under 50. If you are over 50 and looking to take advantage of catch-up contributions, you can save an extra $6,000 on top of that $19,000 contribution limit (unfortunately, the catch-up contribution amount Continue reading 401(k)s Get a Contribution Boost in 2019 Too!
2019 is less than two months away. With the new year will come new changes regarding Roth IRA contributions. The good news is that Roth IRA contribution limits will go up in 2019, which will provide an opportunity to save more for retirement. While the jump won’t be huge–the new limits will be $6,000 for those under 50 and $7,000 for those over 50–they will provide a chance to put away an extra $500 compared to this year. However, that news is tempered by the fact that there are still income qualifications that need to be met for you to Continue reading Number Crunching 2019 Roth IRA Contributions
If you plan on starting and contributing to a Roth IRA, you must have taxable income. However, you should note that income limits apply to your ability to contribute. If you are single and your income exceeds $120,000 in 2018, your ability to contribute to a Roth IRA will phase out. Also, just because you have other retirement accounts, such as a 401(k), does not mean you cannot contribute to a Roth IRA either. You are also limited in how much you can contribute on a yearly basis. If you are single and under the age of 50, you are Continue reading The Complexities of Roth IRA Contributions
At the moment, it appears that the proposed tax bill has picked up momentum and is taking steps towards becoming a reality. Despite the proposed changes to various parts of the tax code in the legislation, one area that does not appear to be facing changes–at least for 2018–is contribution limits. For those looking to make traditional and Roth IRA contributions next year, the contribution limit remains unchanged at $5,500. Furthermore, the $1,000 catch-up amount for those over age 50 remains untouched as well. For 2018, the income limits for deductibility have increased to $63,000-$73,000 for single taxpayers on an Continue reading No Limits on IRA Contribution Limits
Do you know how much you are capable of saving for retirement each year? I’m not asking about what the largest amount the rules allow you to save, but rather, based on your income, how much can you put away and still afford the necessities in life? To answer that, you will need to know your budget. What expenses do you have (i.e. car payments, education expenses, mortgage payments, etc.)? How much do those expenses leave you with? Once you know how much you have left over after the necessities, you can determine just how much you want to put Continue reading Knowing Your Retirement Saving Limits
Over the past few weeks, you may have seen the Republican’s proposed tax cuts mentioned in the news. It’s a much talked about topic that and it was recently revealed that it could have a big impact on how you save for retirement. One area of debate–which could have a huge effect on the middle class–is whether or not to impose a limit on the amount of income that can be saved in a 401(k) retirement account. Republicans had been considering a limit as part of their tax plan as a way to help pay for proposed tax cuts. However, Continue reading 401(k) Contribution Limits and Your Retirement