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.
There are several things you should know if you inherit an IRA. Not knowing the proper way to handle these funds can be costly and defeat the purpose of your benefactor in wanting leave you their hard-earned savings. The rules differ for spouses and non-spouses (such as children), but understanding them can be helpful and save you a bit of money.
As if self-directing one IRA wasn’t powerful enough, did you know you can self-direct two? (Or three? Or more?) As a matter of fact, there is no limit to the number of IRAs you can own. It’s not uncommon for savvy investors to open more than one, depending on their retirement goals and investing decisions.
Roth IRAs offer several unique benefits that traditional IRAs do not. Contributions are made after tax, can be made after you reach 70 1/2 years of age, and distributions are not required by that age, either. Additionally, all earnings grow tax-free—and can be withdrawn at the age of 59 1/2 years with no tax implications, provided the account has been funded for five years.
There are tremendous tax advantages Roth IRAs have over traditional IRAs causing investors to move assets from taxable accounts into tax-free Roth plans. These plans can be self-directed, gaining additional benefits and flexibility to those saving for retirement.
Most of us are well aware that not only are our federal tax returns due on April 15 every year, but that is also the deadline for contributions to be made in our individual retirement accounts for that tax-filing year. However, this year, these deadlines have been extended.
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.)