To be on track in 2023, now is the time to adjust your contributions to your retirement accounts. Recent cost of living calculations means much higher contribution limits for next year.
Plan now to take full advantage of these tax benefits. Not sure what you qualify for or how to plan your contributions? Let us know. We’re here to help you.
How to use
- Identify the type(s) of retirement savings plans that you currently use.
- Note the annual savings limits of the plan to adjust your savings to take full advantage of the annual contributions. Remember, a missed year is a missed opportunity that does not come back.
- If you are 50 years or older, add the catch-up amount to your potential savings total.
- Take note of the income limits within each plan type.
- For traditional IRA’s, if your income is below the noted threshold, your taxable income is reduced by your contributions. The deductibility of your contributions is also limited if your spouse has access to a plan.
- In the case of Roth IRAs, the income limits restrict who can participate in the plan.
If you have not already done so, also consider:
- Setting up new accounts for a spouse or dependent(s)
- Using this time as a chance to review the status of your retirement plan including beneficiaries
- Reviewing contributions to other tax-advantaged plans like Flexible Spending Accounts (health care and dependent care) and prepaid medical savings plans like Health Savings Accounts.