2019 IRA and 401(k) Contribution Limits Rise

 

The personal savings rate in the United States hit 6% in 2018.  Relatively speaking that’s not a bad number.  Unfortunately, it probably won’t get you to your long-term financial goals.

It may sound obvious, but if you want to have more money when you retire, you are going to have to save more money when you are working.

Fortunately, the annual limits on how much you can contribute to your IRA, 401k and other workplace retirement savings plans are pretty generous. What’s more, they’ve been increased for 2019.

A Primer on Dividends

How dividends can be used to increase your total return and provide reliable income in retirement

Photo by rawpixel on Unsplash

Many of my clients use dividends as part of their long-term retirement income plan. Dividends provide consistent, recurring income that often rises with inflation.

Even clients who are still in the “accumulation phase” of their investment plan can benefit from owning stocks and mutual funds that pay dividends.

Click here to see how.

 

Are Qualified Charitable Distributions Right For You?

How to use IRA RMDs to maximize the tax deductibility of your charitable donations.

The Tax Cuts and Jobs Act of 2017 doubled the standard deduction eliminating the need for many taxpayers to itemize their tax deductions. It also made permanent an IRA distribution strategy known as the Qualified Charitable Distribution or QCD.

If you are over 70 ½, own an IRA, and make financial contributions to qualified charitable organizations, the QCD may have a role in your IRA distribution plan.

First some basics… 

A Financial To Do List for 2019

Photo by Cathryn Lavery on Unsplash

Most New Year’s resolutions are abandoned or forgotten by the end of the month.

If you need confirmation of this fact, just count the cars are in the parking lot at your local YMCA this Saturday and compare that to the number of cars you see a month from now.

Odds are parking at your local Y or gym will be a lot better in a few weeks.

Rather than tell you to save more, spend less or to get your finances in order (a wishy-washy goal list in the first place) let me suggest a short list of specific action items to check off your financial to do list before the year is over.

But why wait? If you apply yourself, you can probably cross these items off your list in the next couple months.

Five things to check off your financial to do list in 2019:

Over 70 And Own An IRA?

 

Photo by rawpixel on Unsplash


Adding money to your IRA or retirement account is the relatively easy part of accumulating assets in tax-deferred retirement plans. The hard part comes later in life when money comes out of those accounts.

Get it right and you will enjoy (figuratively speaking anyway) the lowest possible tax bill. Get it wrong and the taxes and penalties can be hefty.

According to the IRS all IRA owners, and many 401k owners as well, must begin taking Required Minimum Distributions (or RMDs) by April 1 of the year afterthe year they turn 70 ½.

Failing to do so could result in a penalty of 50% of the RMD amount. This is in addition to any tax you may owe on that distribution and any interest you might have incurred by not taking your RMD when you should have.

Here is how it works: