A Bankrate study indicates that the average American in their 50s and early 60s only has around $120,000 in retirement savings. This won’t last long when the income stream stops. It’s never a bad time to check in with your financial professional to see if you’re saving enough to retire on your terms. They can also help you with any changes to retirement savings account guidelines.
Retirement Savings This Year*
According to Motley Fool, there are some important new guidelines for retirement contributions this year. Here are the five they deem the most important.
The 401k annual contribution limit will go up in 2018. If you’re over 50 you could contribute more than you are currently.
Roth IRA income limits are changing depending on your income and marital status.
You may no longer be able to deduct IRA contributions from taxable income depending on income and marital status.
You may be eligible to claim the Saver’s Credit when you make retirement savings contributions depending on your income.
HSA contribution limits will go up.
*Find all the details in the original article here.
Over 70 Years Of Age?
An article on CNBC also points out that seniors who are 70.5 and older are forced to take their required minimum distribution from tax-deferred accounts (like a 401k or IRA) or face a tax penalty of up to 50% of that required minimum distribution amount. That could be a huge hit to financial independence. Definitely don’t sleep on this and be forced to pay that penalty.
Motley Fool also offers some tips for seniors who might be looking to boost retirement income.
Look for different ways to invest.
Take advantage of any tax breaks in your accounts like 401k or IRA.
Seeking Help From A Professional
Planning for retirement and knowing all the rules and regulations can seem quite daunting. The help of a financial professional can make it much less painful. From 401k rollovers to helping you choose between growth and income investments, it’s a good idea to seek out professional advice.
Baron Financial Group specializes in retirement planning and investments, 401k rollovers, 529 plans for college, 401k and Profit Sharing plans for businesses, life insurance, individual stocks, bonds, mutual funds, annuities and so much more.
Whether it’s planning for a child’s educational expenses or learning how to invest retirement savings, Baron Financial Group is the good choice for helping manage all of your assets. Locally owned and operated, Baron Financial Group’s full-service approach and customized investment services appeal to those in the beginning stages of financial planning, as well as to the seasoned investor.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice. Some IRA’s have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.