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.