LONGMEADOW, Mass. (Mass Appeal) - We're all in the same boat - trying to save money, but we don't know the best vehicles for our savings. Dylan Bond, owner of Bond Financial Services, came on Mass Appeal to share tips on planning your retirement and managing your retirement accounts.
Bond Financial Services
175 Dwight Rd., Suite 301
For more information or to make a reservation call (413) 754-4747 or visit BondFinancialServices.net.
IRAs and employer-sponsored retirement plans are subject to annual
contribution limits set by the federal government. The limits are
periodically adjusted to compensate for inflation and increases in the cost
For the 2013 tax year, you can contribute up to $5,500 to all IRAs combined
(the limit will be adjusted annually for inflation). If you have a
traditional IRA as well as a Roth IRA, you can only contribute a total of
the annual limit in one year, not the annual limit to each.
If you are age 50 or older, you can also make a $1,000 annual "catch-up"
Employer-Sponsored Retirement Plans
Employer-sponsored retirement plans such as 401(k)s and 403(b)s have a
$17,500 contribution limit in 2013; individuals aged 50 and older can
contribute an extra $5,500 each year as a catch-up contribution.
If you are currently contributing to an IRA or an employer-sponsored
retirement plan, it may be wise to check the contribution limit each year in
order to put aside as much as possible.
Distributions from traditional IRAs and most employer-sponsored retirement
plans are taxed as ordinary income and may be subject to an additional 10%
federal income tax penalty if taken prior to reaching age 59½. If you
participate in both a traditional IRA and an employer-sponsored plan, your
IRA contributions may or may not be tax deductible, depending on your
adjusted gross income.
Promotional consideration provided by Dylan Bond Financial Services.