Retirement Road Map: Tools To Reach Your Retirement Goals

Roadmap to retirement

When it comes to retirement you must have a plan and a goal. Knowing where you are and having a goal is the first step. Having a road map can make it much easier to reach your goal and retire on time.

Explore All Options

If you’re unsure about which type of retirement account to choose, a good option is to put your money in a Roth IRA. Compared to an employer-sponsored retirement account — such as a 401(k) or 403(b) — or a traditional IRA, the Roth is more flexible and typically likely leads to more money in retirement.

However, if your employer matches contributions to your work-sponsored plan, it’s probably best to take advantage of this free money. You should contribute up to the point that contributions are matched.  After that, send your retirement money to a Roth.

Identify 2017 IRA Contribution Limits

An important tool to use as you plan for your retirement is making a 2017 IRA contribution.  First, you’ll need to determine how much of an IRA contribution you can make.

For either a traditional or Roth IRA, individuals under age 50 can contribute up to $5,500 in 2017.  If you are older than 50, the maximum contribution is $6,500. Keep in mind you cannot contribute the full amount to both a traditional and a Roth IRA. However, you can split the amount between the two, if the total doesn’t exceed the 2017 contribution limit.

Roth IRAs are a great tool for retirement, but there are rules that limit contributions. In 2017, income limits begin phasing out a person’s eligibility for contributing to a Roth IRA at $118,000 for singles and $186,000 for couples. The opportunity to contribute to a Roth IRA disappears altogether once an individual or couple’s income surpasses $133,000 and $196,000.

If your filing status is…

And your modified AGI is…

Then you can contribute…

married filing jointly or qualifying widow(er) < $186,000 up to the limit
≥ $186,000 but < $196,000 a reduced amount
≥ $196,000 zero
married filing separately and you lived with your spouse at any time during the year ≥ $10,000 zero
< $118,000 up to the limit
single, head of household, or married filing separately and you did not olive with your spouse at any time during the year ≥ $118,000 but < $133,000 a reduced amount
≥ $133,000 zero

Schedule Your Free Retirement Roadmap Analysis

For more information on Roth IRA and other tools that can help you plan for retirement, call us at 1-866-201-7829 or visit the GPIS website to schedule your FREE Retirement Roadmap Analysis.

>> Download the GPIS Retirement Road Map Infographic