Its never too soon to start increasing your 2016 retirement money!
2016 is fast approaching… and that means….
Its time to consider maximizing your 2016 retirement money!
Here are 3 ways you can start today.
Contribute the most possible in your 401(k)
Did you know that workers can contribute up to and including $18,000… to their 401(k) plans during the next year of 2016?
Want to know if its worrthwhile? Workers in the 25 percent tax bracket who direct the full amount into a 401(k) plan are eligible to save $4,500 on their federal income tax bill.
Money saved is money earned!
And retirement savers in the 35 percent tax bracket will save more than a whopping $6,200 on the same contribution.
Definitely worthwhile!
Next:
Take advantage of “catch-up” contributions.
Baby boomer workers age 50 and older can contribute an additional $6,000 to a 401(k) plan in 2016.
This is makes for a total contribution of $24,000!
For more insights, check out:
- IRS Retirement Topics – Catch Up!
- 2016 401k 403b IRA Contribution Limits
- Fool.com: 2016 401(k) Contribution Limits: A Simple Guide
Good stuff!
And finally:
Obtain an “employer match”
If you are currently working, and ff you simply cannot save enough to take full advantage of the 401(k) tax deduction….
All is not lost.
Try to save enough to claim any matching funds your employer offers (its fee money!)
If your company provides a 401(k) match up to 5 percent of pay, make it important to set up withholding for that amount.
In essence, your will be saving $100 per month if you are earning $25,000 and $250 monthly if your salary is $50,000.
Some companies automatically enroll employees in the plan at only 3 percent of pay. If this happens, you will need to be proactive. Take action! Change your withholding to what you desire if you want to take full advantage of your employers match.
There are more things you can do as well…
But thats a topic for another post! 🙂
Take control,
Manny and MB
GRAB IT NOW