Maximizing Retirement Contributions: A Year-End Guide
As the year wraps up, it’s crucial to focus on retirement contributions to ensure a secure future. Here’s a quick guide to help you make the most of your retirement savings as the year ends.
1. Know Your Limits: For 2023, you can contribute up to $20,500 to a 401(k) and $6,000 to an IRA, with additional catch-up contributions if you're over 50.
2. Employer Match: Don’t leave free money on the table. Contribute enough to your 401(k) to get the full employer match.
3. Roth Conversion: Consider converting your traditional IRA to a Roth IRA for tax-free growth and withdrawals in retirement.
4. Utilize IRAs: Even with a 401(k), you can contribute to an IRA. Contributions can be made until the tax-filing deadline of the following year.
5. Assess and Plan: Review your financial situation to decide if Roth contributions are more beneficial, especially if you expect to be in a higher tax bracket in retirement.
End-of-year is the perfect time to boost your retirement savings. Understanding contribution limits, leveraging employer matches, and considering all retirement account options are key. If you need guidance, BRS CPA is here to help. Our experts offer personalized advice to ensure your financial planning is on track.
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