IRA Contribution Changes
We do a lot of financial planning here at Fi Plan Partners. One of the most important planning tools to our clients is 401(k) and IRAs. It’s a great way to save money in a tax-deferred or tax-free nature. The good news is that this year IRA contribution limits are going up.
What are the Changes?
For Traditional and Roth IRAs, they will be going from a $5,500 annual contribution limit to a $6,000 annual contribution limit. For 401(k) 403(b), they are increasing from a $18,500 annual contribution limit to $19,000. The over 50 catch up remains at a $1,000. Why is this important? It’s important because if you want to save more, you now are allowed to. Also, if you have your account set to save the maximum, such as a 401(k), you will see a slight bump in your deduction and that could reduce your salary.
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
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