Catch-Up With Your Retirement Savings Contributions With These Practical Methods

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Those of you who started saving for retirement really late in life, or have fallen behind with the contributions, can consider the following options to make the most of your investments.

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Capitalize on Contribution Levels

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Alter Your Existing Investment Plans for A Profitable Mix

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Consider Investing Outside Your Existing Retirement Plan

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The maximum traditional and Roth IRA limits have been raised. You can now make more retirement saving contributions to support your golden years.

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Participate in Salary Deferral Plans

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Contribution Limits of a Simple IRA Plan

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Swipe Up

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Catch-Up With Your Retirement Savings Contributions With These Practical Methods

Those of you who started saving for retirement really late in life, or have fallen behind with the contributions, can consider the following options to make the most of your investments.

Capitalize on Contribution Levels

You should take full advantage of the matching contribution made by your employer till you are fully vested. To qualify for a matching contribution from your employer, you need to make the minimum required contribution.

Alter Your Existing Investment Plans for A Profitable Mix

Based on your investment’s tolerance for instability and the time-frame, you can determine an investment plan that allows for maximum growth. If you haven’t saved enough to fund your retirement, you can consider investing your assets in growth funds.

Consider Investing Outside Your Existing Retirement Plan

Opening an IRA can give you the benefits of tax-deferred income. IRAs can be classified into two categories: Roth IRA and traditional IRA. You can consult an experienced financial advisor to find out which IRA suits your specific situation and best fits your financial needs.

The maximum traditional and Roth IRA limits have been raised. You can now make more retirement saving contributions to support your golden years.

Make the Most of the Available Tax Incentives

Participate in Salary Deferral Plans

From 2020, your plan allows you to contribute up to $19,500 towards your 401(k), 457, or 403(b) account. If you have surpassed the age bracket of 50, you are eligible to put in an extra $6,500 to your existing retirement account over and above the contribution of $26,000.

Contribution Limits of a Simple IRA Plan

The contribution limit for those under 50 is set at $13,500. Those above 50 years of age can make a catch-up contribution of $3,000 which will raise the total contribution to $16,500. These limits are adjusted for inflation and are likely to increase in $500 increments.

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