4 Ways to Save for Retirement After Maxing Out Your IRA
If you don't have access to a 401(k) plan through your employer, then the obvious way to save for retirement is to use an IRA. IRAs are a great option, but they have one rather serious drawback compared to 401(k)s: the annual contribution limit is much lower.
In 2017 you can contribute up to $18,000 to a 401(k) account, plus a $6,000 catch-up contribution if you're 50 or older. But with IRAs, the contribution limit for 2017 is a mere $5,500 with an additional $1,000 catch-up contribution permitted if you're 50 or older. Thus, if you're contributing 10% of your income (the lowest recommended percentage) you'll butt up against the base contribution limit as soon as your annual income exceeds $55,000. Fortunately, there are other options for your hard-earned retirement savings.
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Source: Fool.com
