FULFILL YOUR RETIREMENT GOALS
Max Your 2018 IRA Contributions & Jump-Start Your 2019 Savings
Beginning a new calendar year can be a refreshing start for many things in life. It's a time to set new goals and challenge yourself to healthier habits. A popular resolution: Saving more for retirement.
To help you get a solid start on achieving your goal, consider maxing out your IRA contributions.
Here are a few tips to help keep you motivated:
You Still Have Time to Fully Fund Your IRA for 2018
You have until Monday, April 15, 2019, to contribute up to the $5,500 limit ($6,500 if you're 50 or older).
Benefit: If you meet the requirements to deduct your traditional IRA contribution, you could potentially lower your adjusted gross income by the amount you contribute.
Translation: More money available for your near-term goals with a traditional IRA. (One thing to note: This only applies to traditional IRAs, not Roth IRAs.)
Start Contributing to Your 2019 IRA Now
Contribution limits are $6,000 for the 2019 tax year ($7,000 if age 50) so the earlier you start saving, the better chance you have of fully funding your IRA.
Benefit: Maxing your contributions annually could help your retirement income grow significantly thanks to the power of compounding.
Translation: The more you put in, and the earlier, the more your contribution has the potential to grow at an increasing rate.
Enjoy Higher Contribution Limits With Age
Once you reach age 50, federal IRA rules let you contribute beyond the annual limit something known as catch-up contributions. If you're 50 or older, the contribution limits are as follows:
- $6,500 for tax year 2018.
- $7,000 for tax year 2019.
Benefit: These higher limits not only mean you could see significant compound growth, but you could also benefit from increased tax advantages.
Translation: If you didn't start saving as soon as you wish you'd had, you have the chance to make a comeback.
Thrivent Financial representatives and employees cannot provide legal, accounting, or tax advice or services. Work with your Thrivent Financial representative and, as appropriate, your attorney and tax professional for additional information.