New Year, New Plan - Changes to Retirement Savings Vehicles
In November we released a series of blogs with our “End-Of-Year Checklist”. The purpose of those were to make you aware that you only have a handful of weeks left to complete any 2022 financial tasks. Today, we want to inform you about other financial changes coming in 2023. Preparing for these changes now can make your retirement down the road more attainable.
Contribution limits for IRAs, 401(k)s and other retirement plans are automatically indexed for inflation. One silver lining to our current high inflation is that we are seeing higher than usual adjustments. These adjustments offer the opportunity for greater tax savings today as well as greater asset accumulation for retirement. We encourage you to take advantage of this opportunity to increase your retirement plan contributions.
Regardless of how much you can put towards retirement, it’s important to contribute early and on a consistent basis. Remember, that the sooner you contribute to your retirement accounts, the more time compound interest has to work its magic and help your money grow.
For questions about your specific retirement plan(s) and your financial future, please contact Infinity Wealth Counsel. We are looking forward to working with you and your family as we welcome the New Year.