Secure Your Financial Future: Maximize Retirement Savings
Here are a few key points to consider as you evaluate your retirement contributions:
1. Contribution Limits: The IRS sets annual contribution limits for retirement accounts such as 401(k)s, IRAs and pensions. You should familiarize yourself with these limits and consider the tax advantages and potential growth of these tax deferred investments.
• 401(K) – $22,500 plus additional “catch-up” of $7,500 for those 50 or older (total $30,000)
• IRA – $6,500 plus additional catch-up provision of $1,000 (total $7,500)
• Roth IRA – $6,500 plus additional catch-up provision of $1,000 (total $7,500)
Please note that contribution limits for Roth accounts vary according to your household income and filing status. We recommended discussing relevant contribution limits with your tax professional.
2. Catch-Up Contributions: For those 50 or older, catch-up contributions provide an opportunity to accelerate your retirement savings. Additional funding beyond standard limits may help bridge savings gaps.
3. Employer Matching: If your employer offers a matching contribution program, take full advantage of this benefit. We strongly recommend that at a minimum, you contribute enough to your employer sponsored plan to receive the maximum matching funds offered. Employer matches are essentially “free money” and can significantly enhance your retirement savings.
4. Investment Performance: Take a moment to evaluate the performance of your retirement accounts and investments. Market conditions and personal circumstances can impact the growth of your portfolio. Consider scheduling some time with us at 5C Capital, we will gladly review your retirement account allocations and recommend any necessary adjustments.
5. Financial Planning: We firmly believe that a holistic approach to financial planning is crucial for long-term success during your retirement. You should consistently and frequently review your financial plan and key components: budgeting, debt management, emergency funds and short/long term investment goals. 5C’s team is available to develop a comprehensive strategy aligned to your unique needs.
If you would like to discuss your retirement goals or have any other financial concerns, please do not hesitate to reach out to us. Plan with care. Live with confidence.