If you don’t already have a 401(k), do I have some great news for you! The new limits for 2018 contributions just came out and as of January 1, 2018, you can contribute $18,500.00 to your 401(k).
For a quick reminder, a 401(k) account is a retirement savings account through your employer (SEP IRAs are for self employed individuals and those have slightly different rules) which allows you to contribute money to your retirement before taxes are taken out. Yes, taxes are taken out once you retire, but 401(k) plans allow you to lower your taxable income right now.
“Over 1.1 million dollars saved for retirement“
With modest returns, a forty year old could max out his or her 401(k) account for the next twenty-seven years and have over 1.1 million dollars saved for retirement above and beyond social security. That’s a lot of vacations.
Weaver Firm PC 817.638.9016 or TWeaver@www.weaverlegal.net