What steps can you take to kick-start your successful retirement planning in 2019? Certified Financial Planner Paul Fain joins us now with 6 moves to make right now!
WHAT ARE THE FIRST STEPS TO BOOST OUR SUCCESSFUL RETIREMENT PLANNING?
- Boost retirement contributions: The maximum annual 401(k) contribution limit is $19,000. If that’s not something you can afford, even small increases can compound to provide a giant benefit in the long term.
- Make catch-up 401(k) contributions: If you are age 50 or above (or will be) in 2019, you are allowed to contribute $6,000 extra to a 401(k), bringing the maximum to $25,000.
WHEN IS A ROTH 401(K) OR ROTH IRA APPROPRIATE?
- Go Roth: Roth Contributions give no immediate tax break but you won’t pay any taxes on distributions. Roth IRA sets income limits to making contributions, a Roth 401(k) sets no such income limit. Consider diversifying the tax treatment of your retirement funds.
SPEAKING OF IRAs, WHAT ARE THE CONTRIBUTION LIMITS ON AN INDIVIDUAL RETIREMENT ACCOUNT?
- Max out IRA contributions: If you have earned income, you can contribute $6000 to a traditional or Roth IRA. If age 50 or over, you can contribute another $1000.
AND OUR FINAL TWO TIPS FOR BOOSTING OUR SUCCESSFUL RETIREMENT PLANNING?
- Take the time to review: Review your 401(k) investments. Is it still in line with your needs? too risky? automatic rebalancing feature?
- Include a Health Savings Account: if you have a high deductible health insurance plan. amazing triple tax-free benefits. In 2019, a family can contribute $7,000 towards an HSA, and an individual can contribute $3,500 per year. The HSA acts as a Roth IRA for health care.
Are you in need of customized retirement plan advice? We would love to help you on your retirement journey! Contact us to set up a consultation.
