[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]For those of you that want to stash away more money for when you retire, you have the opportunity to do so this year if you haven’t already. The IRS has increased the maximum limit for your annual contributions as well as catch-up contributions for those that qualify.
The change in limits took effect on the 1st of January. The retirement plans that have been affected include the Thrift Savings Plan (TSP), 401(k), 403(b), and 457 accounts.
Just as many Americans that are worried about not having enough savings for retirement, if you are concerned as well and have not done so already, you will want to review and make some changes regarding your retirement planning.
The maximum contribution limit can be different depending on the kind of account you have and your age. For those individuals that are 50 or older are eligible to put in more contributions under catch-up contributions.
Those that only have an IRA, the contribution limits have not changed from last year’s cap. And those that have an employer-sponsored retirement plan such as a 401(k), we will go over how much money you can put into these kinds of accounts for this year.
The maximum contribution limit for a 401(k), 403(b), 457 plan, and TSP has been increased to $19,500 from last year’s $19,000.
Investors that are eligible for catch-up contributions will also have a $500 increase that totals to $6,500. This allows people 50 and up to save $1,000 more for their retirement.
For the people that are not able to provide max contributions to their retirement, it is recommended to at least contribute the max amount that your employer will match to if matching is offered. This is essentially free money that will help your retirement savings grow.
Many employees tend to stick with just their workplace retirement plan, but you shouldn’t just put all your eggs in one basket. You can also consider saving into a traditional IRA or Roth to diversify your retirement portfolio.
It may be in your best interest to work with a financial professional that can help uncover your needs and assist with how to strategize your retirement and what plans may work for your situation.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36714″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
