Now may be a perfect time to start getting caught up.
Many people are concerned that they are not saving enough for retirement. If this sounds familiar, you are not alone. According to a recent Bankrate survey of nearly 2,700 adults, over half the respondents say they are not where they should be, and an additional 20% say they have no idea where they fall when it comes to saving for their retirement.1
From January 1st through April 15th, however, we are afforded an excellent opportunity to start getting caught up with that retirement savings. During this time, those who have not fully funded their IRAs for 2019 (either Roth or Traditional) and are qualified to do so, have the opportunity to complete their 2019 IRA contribution AND make a 2020 contribution.
That means, for a husband and wife that have not contributed to IRAs for 2019 and are 50 or older, they may be able to contribute $7,000 each for 2019, AND $7,000 each for 2020. That’s $28,000 total for the family that can be contributed to retirement in a short period of time. Be diligent, though; the 2019 contributions need to be completed on or before April 15th. There are also restrictions as to who can make IRA or Roth IRA contributions and how much, so consulting your tax professional is always a good idea.
For those that qualify, a $28,000 retirement deposit for a household could go a long way to begin getting caught up on retirement savings and help jumpstart their plan towards their financial future.
About the Author
Doug Dawe is Director of Financial Planning for Dunleavy Wealth Management. He specializes in financial planning and investment management for employees of Siemens, FCA, GM, Beaumont, U of M, and other employers in metro Detroit. He can be reached at 248-663-4792 or through his website, www.dunleavywealth.com
Securities and investment advisory services offered through Royal Alliance Associates, Inc. member FINRA/SIPC. Royal Alliance Associates, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Royal Alliance Associates, Inc. 28411 Northwestern Hwy., Suite 1300, Southfield, MI 48034. (248) 663-4700. 18165128-20200130
1Business Insider, Nov 22, 2019