This year is almost over, and we want to know: have you maxed out the contribution limits in your retirement plans for 2018? Have you opened a new retirement account that best meets your needs? To do either (or both!) there are some contribution limits and retirement plan deadlines you need to know. This information will help you end 2018 on a strong note so you can get a running start with your retirement plan goals in the new year.
Did you max out the contribution limits in your IRA for 2017? If not, you still have time. In fact, you can make last-minute contributions to your IRA for 2017 and get a head-start on your contributions for 2018 right now, before you file taxes for 2017.
SIMPLE and SEP IRAs are retirement plans designed for small business owners as well as self-employed individuals. These popular plans allow today’s business owners to offer easy, tax friendly savings options for their employees. Self-directing either plan allows account owners to make their own investment choices to build retirement wealth. Self-directed retirement plans give you great flexibility and complete control over your retirement plan, which you’ll learn more about towards the end of this article.
SIMPLE IRAs are designed for employers to make it easy to offer benefits to themselves and employees. Employees choose their own retirement plan and designate a portion of their salary to be deposited (before tax) into these accounts.
Retirement planning isn’t easy these days, especially if you’re getting started late in the game. The amount of money you need to retire depends on many things including but not limited to the quality of life you desire in your golden years, whether or not you want to leave an inheritance to your children, considerations of your anticipated health costs as you grow older, inflation, tax rates, the state of the economy, and perhaps most importantly—the amount of money you are able to contribute to a retirement plan.
Self-directed IRAs are used by those who want to control their own investing funds and decisions. A large number of alternative assets are permissible in these plans, and individuals are encouraged to invest in what they know best to secure successful futures.
In October the IRS released the contribution limits for 2016—such as they are because not much changed. Why? The cost-of-living index did not meet the requirements needed for a change in limits, meaning that inflation this year was low. (Sigh.)
Self-directed IRAs are becoming well known and are widely used by investors seeking greater control of their own retirement funds and investing decisions. However, this account structure has actually been in place since 1974—the year IRAs were created. One reason self-direction goes largely unrecognized by the average investor is because typical IRA custodians (banks, brokerages) only offer traditional investments (such as stocks, bonds, and mutual funds) to their clients.
There is plenty of good news for many retirement and other savings plan holders regarding 2015 contribution limits. While traditional and Roth IRAs contributions remain the same as 2014, other plans see an increase in limits—and every little bit counts!
Topics: Educational Savings Accounts (ESA), Roth IRAs, Self-Directed IRA, SEP IRA, SIMPLE IRA, Single Member LLC / Checkbook IRA, Health Savings Account (HSA), Contributions & Distributions, Traditional IRA