4 Retirement Savings Moves to Make Before 2018
Before you start your happy new year, it's important to wrap up your tasks for the old one -- especially when it comes to your retirement savings plan. This is your last chance to make 2017 a good year for your future retirement. By taking these steps you can not only ensure you're on track for retirement, but also cut your tax bill for the year.
At least a week or two before the end of the year, add up your retirement contributions for 2017 and see how your contributions compare to your IRA or 401(k) annual limits. If you have an IRA rather than a 401(k), you'd be advised to max out your contributions. That's because IRA contribution limits are much lower than 401(k) limits; for 2017, the most you can contribute to your IRAs is $5,500 (or $6,500 if you're 50 or older). Since workers need to save at least 10% of their income for retirement -- and 15% is better -- $5,500 is a pretty low bar for the year.
If you haven't managed to hit that 10% to 15% in contributions this year, you still have time. You can make 2017 contributions to your retirement savings accounts right up till April 15 of the next year, although waiting that long to catch up can hurt you by reducing how much you can afford to contribute in 2018. Still, it's better than missing out on contributions for the current year.
Source: Fool.com
