[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]This year, the IRS has increased the max limits you can contribute to your pre-tax retirement savings account. What this means is that you can pitch in up to $19,000 into your401(k),403(b), most 457 plans, and Thrift Savings Plan. This is a $500 increase from last year’s limits. The contribution limit for an IRA has also increased $500 from 2018 so that the max amount you can put in is $6000
For those age 50 and up, you can save even more. You can add an extra $1000 to your IRA and can contribute another $6000 to your 401(k) and possibly other plans provided by your employer.
Though your savings may not even be close to reaching those maximums, it is always good to check on your savings rates to ensure you will reach your goals this year.
Here are a couple of tips that may help:
1. Small increases still mean progress.
If possible, you should be trying to save up to 10-15% of your yearly salary for retirement. However, if that is something that cannot be done at the moment, don’t fret. For example, if you can only save 3% right now, you can slowly make your way to the ideal 10-15% number.
You can do this by saving an extra 1% each year. Slowly, but surely, this will eventually add up without much pain.
2. Make the extra cash count.
Most of us may be guilty of using surprise money toward a splurge or even bills, but make your retirement savings a priority when extra income or money comes your way.
If you get a raise, you may also want to raise what you contribute to your savings for your future retirement. Maybe those bonuses you get can also go towards your savings.
It doesn’t sound as enticing as buying that new grill you’ve been eyeing or changing the decor of your house, but your future self will thank you later.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36275″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
