Contribution Limits for 2021

The IRS announced that employee contribution limits on 401(k)s and other qualified retirement accounts would remain the same in 2021. The deferral limit for individuals under the age of 50 is $19,500. The catch-up for individuals over age 50 will be $6,500. The total contribution limit (from all sources) is increasing by $1,000 to $58,000 in 2021 (and $64,500 including …

The Case for Increasing Roth Contributions

Roth IRAs have always been valuable tools in the retirement and legacy world. Then late in 2019, the SECURE Act made tax-deferred inherited accounts, like regular IRA’s or 401k’s a 10-year ticking tax bomb for heirs. Shortly after, the 2020 CARES act injected trillions of dollars back into the economy, inflating the US’s growing debt. This article will start with …

Making Lemonade out of Three COVID Lemons

In light of recent concerns over the economy, we are all worried about the performance of our investment portfolios. The latest pandemic has spiraled the market into a decline that is proving to be unpredictable. With this has come a lot of uncertainty and a few sour lemons. However, there are actions you can take that will help sweeten things …

Back-Door Roth Contributions

Because of the nature of tax-free growth and distributions, Roth IRAs are one of the more valuable savings tools available. The one major hurdle to these accounts is the income limitation when making direct contributions. In 2018, for single filers contributions to a Roth IRA are phased out for people with Modified Adjusted Gross Income (MAGI) above $120,000 and completely …