TAX TIP TUESDAY: IRA Contribution Limits
401(k) accounts and IRAs have increased contribution maximums for 2019.
Contributing the maximum amount to a retirement plan can increase your tax savings as well as compound interest earnings. Need help making these contributions a reality? Here are some ideas:
• Contribute your raise or bonus. A great time to contribute to a retirement plan is when you receive a raise or bonus. It allows you to invest in your future without affecting your current budget. Your investment may increase even further if your employer offers to match your contribution.
• Add a second job. Consider part-time work such as ride-sharing or a meal delivery service, and the additional income will help get you to your savings goal without disrupting your current work schedule.
• Automate your contributions. If you are investing in an individual plan, set up auto contributions to pull a set amount from your bank account on a monthly basis.
Working through these ideas now gives you a great chance to take advantage of the benefits of funding new or existing retirement accounts. Why not take full advantage of the tax benefits they provide? Please call 805-496-2828 if you have any questions.
