When it comes to saving for retirement, the earlier the better. It can feel a little overwhelming to start a retirement account, but Dundee Bank is here to make it as seamless and simple as possible!
As you design your 2019 budget, it is important to understand how much you can contribute to your retirement accounts to maximize your savings. Changes in tax code can be a headache to even the most well-versed of investors. The recent tax changes might have your head spinning, so we did the reading and cut it down to brass tax… so to speak! Here, we’ve assembled the cliff notes version to get you started!
*see IRS Notice 2018-83 for further guidance.
For years, your maximum contribution to your IRA was capped at $5,500. For those hoping to grow their accounts a little faster, we have great news! An increase going into effect this year allows for an Individual Retirement Account (IRA) contribution of $6,000! For those aged 50 and older, a catch-up contribution of $1,000 is allowed.
Your maximum contributions to your 401(k) or similar workplace retirement account increases to $19,000. For those aged 50 and older, a workplace catch-up contribution of $6,000 is allowed.
When you think of your golden years, it’s important to be realistic about inflation and the true cost of maintaining your lifestyle. This information is provided for informational purposes only and should not be considered tax or legal advice. It is important to talk with your tax advisor with any questions regarding your retirement savings.
Now that you know what you can contribute, ensure that you are getting a great rate on your IRA Savings Account and IRA Certificates of Deposit. Make an appointment to stop by and meet with our knowledgeable and friendly staff to talk retirement today!