Still time to "max out" your IRA
Edward Jones - Chad Choate, AAMS
For more information about the author, click to view their website: Edward Jones
Nov 30, 2023
Florida - Sarasota, Bradenton & Charlotte Counties
Email US
Click to Email Us
As the
year winds down, you might be wondering whether you still have time to make some
positive financial moves — and you do. One productive action to consider is “maxing
out” on your individual retirement account (IRA).
You
have until April 15, 2024, to contribute to your IRA for the 2023 tax year. But
if you can afford it, why not put in the extra money now and get it working for
you as soon as possible?
For
2023, you can put up to $6,500 into an IRA, plus an additional $1,000 catch-up
contribution if you’re 50 or older. (This limit rises to $7,000, plus the $1,000
catch-up amount, in 2024.) If you already have a traditional or Roth IRA, you may
know the benefits, but if you don’t have either, here’s a quick summary:
• Traditional
IRA – When you invest in a traditional IRA, your earnings grow tax deferred
and your contributions may qualify for a tax deduction. If you and your spouse don’t
participate in a 401(k) or similar employer-sponsored plan, you can deduct the
full amount of your IRA contributions, up to the contribution limit. But if you
or your spouse invest in an employer-sponsored plan, you may be able to take a
full or partial deduction if you are married and filing jointly, with a modified
adjusted gross income of $136,000 or less. For single filers, this figure is
$83,000. (For the 2024 tax year, these figures rise to $143,000 if you’re
married and file jointly, and $87,000 if you’re a single filer.)
• Roth
IRA – By investing in a Roth IRA, your contributions are not tax deductible,
but your earnings can grow tax free provided you’ve held your account at least
five years and you don’t start withdrawing the earnings until you’re 59½. And
because you’re investing with after-tax dollars, you can withdraw contributions
— not the earnings — at any time, for any purpose, without taxes or penalties. You
may be eligible for a full or partial contribution if your modified adjusted
gross income is less than $228,000 married and filing jointly, or less than $153,000
if you’re a single filer. (For 2024, these figures are less than $240,000 if
you’re married and file jointly, and less than $161,000 if you’re a single
filer.)
These
tax advantages provide a strong incentive to fully fund an IRA each year.
Furthermore, you can put almost any investment — stocks, bonds, mutual funds
and so on — into an IRA, so you can create a portfolio that matches your goals and
risk tolerance.
You can
still fully fund your IRA for the 2023 tax year, but as you continue to save,
you might find a more efficient way to reach the maximum, such as setting aside
a regular amount each month. To make it as stress-free as possible, you can
have the money automatically moved from your savings or checking account to your
IRA. If it’s still difficult to come up with these amounts every month, you
could put in what you can afford and then add other funds, such as a year-end
bonus or a tax refund, when you receive them.
Any time you contribute to your IRA is a good
time — but if you can do it early, or have a savings strategy throughout the
year, you can avoid the last-minute dash to put in the cash.
This article was written
by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member
SIPC
Other Articles You May Like
Medicare/Medicaid/Insurance in Lafayette, CO
When an older adult needs help at home and sees several clinicians, a coverage decision can affect everything from prescription refills to rides. If youre considering TRU PACE in Lafayette, start by asking how enrollment would change the care and coverage you already use. How Medicare and Medicaid Fit Into PACEPACE is the Program of All-Inclusive Care for the Elderly. It coordinates healthcare and support for eligible adults who meet a state standard for nursing home-level care and can live safely in the community with PACE support at enrollment. Applicants must also be 55 or older and live in the programs service area. TRU PACE and Your Current CoveragePhone: 303-665-0115Medicare says people with Medicaid pay no monthly PACE premium. Medicare beneficiaries without Medicaid pay premiums for the long-term care portion and Medicare Part D drugs. Medicare also says participants owe no deductible, copayment, or coinsurance for drugs, services, or care approved by their PACE team. Ask TRU PACE for an estimate based on your individual coverage before enrolling. Doctors, Prescriptions, and Existing ServicesTRU PACE says it becomes the participants insurance provider at enrollment. Participants generally receive care through the programs provider network. Bring a list of your doctors, medications, and scheduled services. Ask which providers are in the network and how the team would coordinate any changes. Why This Matters in LafayetteIf you regularly see a clinician near home or have a specialist visit scheduled outside Lafayette, give the enrollment team the names and dates. Ask which appointments can continue and what to do about any refill due around the enrollment date. How to Get Started1. Gather Your Coverage InformationHave your Medicare and Medicaid information, if applicable, along with details of any current plan. List the appointments and prescriptions you rely on most.2. Ask for an Enrollment and Cost ReviewCall TRU PACE and ask for your expected monthly cost, when any coverage change would take effect, and who would help coordinate the transition. Related Seniors Blue Book CategoriesPACE Adult Day Services Care Management
Funeral Cremation & Mortuary Services in Lafayette, CO
After a death, families may have to make several decisions in a short time. Others prefer to talk through their wishes ahead of time. In either situation, it helps to separate the practical arrangements from the decisions about how to gather, remember, and say goodbye. What Funeral and Mortuary Services CoverA funeral home can help arrange transportation and care of the person who died, assist with paperwork, and coordinate burial or cremation. A family may also arrange a viewing, funeral, memorial, or private gathering. Ask which decisions need to be made immediately and which can wait. The Natural Funeral in LafayettePhone: 720-515-2344The Natural Funeral lists natural burial, flame cremation, water cremation, and terramation, also called natural organic reduction. Water cremation uses an alkaline water process, and terramation transforms remains into soil. If one of these options interests you, ask what the process involves, how long it typically takes, and what the family receives afterward. Planning a Gathering and Reviewing CostsThe Lafayette funeral home is at 102 W Chester Street in Old Town. Ask what can take place at the Lafayette location and which parts would involve another venue or a cemetery. Request a General Price List and a written breakdown of your choices so you can see which fees cover the funeral homes work and which come from outside providers. Why This Matters in LafayetteIf relatives are coming from out of town or some guests have limited mobility, ask about parking, step-free access, and how many people the gathering space can accommodate. If you plan to hold a service and burial at different locations, check how much time guests will need between them. How to Get Started1. Write Down the Persons WishesLook for written instructions and note any cultural or religious preferences. If youre planning ahead, tell a trusted person where you keep your instructions and whom to call.2. Ask for a Written PlanCall 720-515-2344 and ask what is needed on the first call. Once youve discussed options, request the expected timeline and itemized costs before approving arrangements. Related Seniors Blue Book CategoriesCounseling Hospice Advance Care Planning
Adult Day Services in Lafayette, CO
When an older adult spends most weekdays alone, families may need more than a place for them to go. They may also be juggling transportation, appointments, and help at home. TRU PACE in Lafayette offers a day center as part of a program that coordinates those needs for eligible older adults. What Are Adult Day Services?Adult day services offer daytime support outside the home. Depending on the program, participants may spend time with peers, eat a meal, take part in activities, or receive help with daily needs. Some centers accept people directly. The Lafayette TRU PACE center serves people enrolled in its broader Program of All-Inclusive Care for the Elderly. TRU PACE in LafayettePhone: 303-665-0115TRU PACEs Lafayette center is at 2593 Park Lane. The program coordinates medical and social services and arranges transportation to the day center and medical visits as needed. Ask the enrollment team what a typical center day includes, how often a participant might attend, and how the team decides what support to arrange at home. Who May QualifyPACE applicants must be at least 55, live in the programs service area, meet the states standard for nursing home-level care, and be able to live safely in the community with PACE support at enrollment. Ask how enrollment would affect access to current doctors and prescription coverage before making a decision. Why This Matters in LafayetteWhen family members already drive someone to several appointments a week, a coordinated schedule can change who needs to be available and when. Ask how pickup would work at the persons Lafayette address and who to call if a ride or appointment changes. How to Get Started1. Ask for an Eligibility ReviewCall TRU PACE. Have the participants ZIP code, current coverage, and a short list of the help they need. 2. Ask to Visit the CenterFind out what the participant might do on a center day, how transportation works, and what changes to their current care arrangements enrollment would involve. Related Seniors Blue Book CategoriesCare Management Transportation Respite Care