8 Proven & Practical Ways to
Catch-Up With Your Retirement Savings Contributions
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.
1. Capitalize on Contribution Levels
Contributing towards a salary deferral or investing in an automatic plan is a great way to fund your retirement.
2. 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.
3. 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.
The maximum traditional and Roth IRA limits have been raised. You can now make more retirement saving contributions to support your golden years.
4. Make the Most of the Available Tax Incentives
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.
5. Participate in Salary Deferral Plans
6. 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.
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