When it comes to retirement accounts, bigger is better. The more dollars you contribute now, the more money you will have for retirement.
For 2013, several changes have been made to retirement account contribution limits. Fortunately, these increases can help you add more to your accounts now, and help you reach your retirement goals earlier. Another benefit of higher limits can be to hedge against possible higher taxes. The following are changes for retirement accounts:
For a 401(k), the Elective Deferral limit increased $500 to $17,500 in annual contributions. Additionally, the catch-up provision for those 50 years old and older increased $500 to $5,500.
For a Traditional IRA and a Roth IRA, an individual may contribute $500 more in 2013 than in 2012, which increases the total per person contribution to $5,500. For individuals 50 years old and older, there is an additional allowed catch-up amount of $1,000.
If you have a SIMPLE or SEP IRA, your limits also increased. For SIMPLE owners, you can defer $12,500, which is an increase of $500 over the 2012 limit. For SEP IRA owners, the annual contribution limit increased $1,000 to $51,000 for 2013.
If you have any questions or would like to discuss your retirement account options with a Founders Investment Services Financial Consultant, please call 1-866-739-7064.
and investment advisory services offered through Cetera Advisor
Networks, LLC, Member FINRA/SIPC - Founders Federal Credit Union,
Founders Financial Group, LLC and Founders Insurance Services are not
affiliated with Cetera. Investment Services is a department of Founders
Federal Credit Union. Registered Sales Branches are located at 607 N.
Main Street, Lancaster, SC 29720; 1290 Old Springdale Road, Rock Hill,
SC 29730; 100 Springcrest Drive, Fort Mill, SC 29715; 1307 Boiling
Springs Road, Spartanburg, SC 29303.
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This article was written by Derek Hawk with Founders Investment Services. It was published in Founders CU Connect Newsletter (April 2013).