Did you maximize your retirement plan contributions?
Make sure to contribute to your retirement plans (IRA, 401K, 403B, etc.) to take advantage of available tax deductions and employer matching. If your employer
offers a matching contribution, you should (if possible) contribute as least the amount necessary to get the full match. This is free money!
Here are the contribution limits for 2022
401K
$20,500 plus $6,500 catch-up
IRA
$6,000 plus $1,000 catch-up
Simple IRA
$14,000 with $3,000 catch-up
SEP
$61,000
Did you take your Required Minimum Distributions?
Once you reach the age of 72, you are required to take withdrawals from your retirement plans. Deadline for RMDs is December 31st, 2022.
Make catch-up contributions if you are 50 and older
In 2022, you are able to add an additional $6,500 to an employer sponsored plan and $1,000 to an IRA account.
Does a Roth conversion make sense?
With equity markets down in 2022, there is a potential to decrease overall income tax on retirement assets over the long term with a Roth IRA conversion. A Roth IRA conversion allows investors to transfer traditional IRA assets to a Roth IRA and have the assets grow tax-free and not subject to future RMDs.
