It goes without saying that retirement advice is always appreciated and is highly sought after. That’s why we are featuring Retirement Tuesday every Tuesday in June!
While retirement advice is often complicated and must be personalized, we have four tips on picking up free money for retirement that everyone can follow.
- Max out your 401(k).
Your 401(k) is an excellent tool for getting your retirement money. In order to do this, you should focus on maximizing your contributions and making sure you always get the company match.
** To learn how to make your 401(k) work for you, tune in to our blog next week where we will go into 401(k)s in depth.
- Open a spousal IRA.
If your spouse does not have access to a 401(k) (for example, if your spouse is a homemaker), you can open up a spousal IRA. With this type of IRA, you can set aside money each year into your spouses account for you to access after retirement. As a bonus, it will cut your joint taxes down in the meantime.
- Max out your Roth IRA.
Contributions to Roth IRAs can be taken back out immediately if needed with no tax consequences. It is like having a tax free savings account. Therefore, it is smart to max out your contributions every year. If you make over the threshold for contributing to a Roth IRA, call us and we can go over your options. Often, the benefits outweigh the initial cost.
- Consider a health savings account (HSA).
With HSAs, you are essentially taking the money you would be spending on health care and putting it into a separate account… only the money is now pre-tax. As an added bonus, any money not used will roll over every year with interest. For those with high-income, it’s like having a second IRA!
If you have any questions on picking up free money for your retirement, feel free to call us at (314) 993-4285 or email us at firstname.lastname@example.org.