The topic of IRA's & Roth IRA's can certainly be confusing! But these investment tools are valuable in helping to set you up for the retirement that you envision.
There are a number of reasons why a Roth IRA is a smart way to invest for retirement. For most investors, tax benefits rank #1 in their reasoning for investing in a Roth IRA.
Changes for 2020
The I.R.S. increased the annual contribution limits on IRAs, 401(k)s, and other widely used retirement plan accounts for 2020. Here’s a quick look at the changes.
*As of January 1st, 2020, you can put up to $6,000 in any type of IRA, for both tax years 2019 and 2020. The limit is $7,000 if you will be 50 or older at any time in 2020.1,2
*Annual contribution limits for 401(k)s, 403(b)s, the federal Thrift Savings Plan, and most 457 plans also get a $500 boost for tax years 2019 and 2020. The new annual limit on contributions is $19,500. If you are 50 or older at any time in 2020, your yearly contribution limit for one of these accounts is $26,000.1,2
How can you create a solid retirement plan? How can you help ensure that your True Wealth is protected? Most people have at least one, if not multiple, 401(k)s, 403(b)s, IRAs, Roth IRAs, and Brokerage accounts. But how many of you are truly leveraging other useful savings tools like HSAs, Roth IRA Conversions, and the Saver’s Credit just to name a few? Very few people are fully utilizing all of the financial tools available to them. That is why we would encourage you to consider looking at these underappreciated options for potentially greater retirement savings: