While there are plenty of things that you can do to increase your retirement nest egg there is one thing that can make one of the biggest impacts to your nest egg. That one thing that you can do is to consistently contribute to your retirement year after year. The more you can contribute the better. Maxing out your retirement account each year can have one of the biggest impacts to your total nest egg.
How much can you contribute to your retirement account each year and even more specifically to your self-directed IRA? The following are the contribution limits for 2014:
Traditional and Roth IRA Contribution Limits for 2014
Age 49 and under – 100% of compensation, up to $5,500
Age 50 and over – 100% of compensation, up to $6,500
To be able to make this contribution to a Roth IRA in 2014, an individual’s MAGI (modified adjusted gross income) must be less than the below numbers:
Individual – $114,000 – $129,000
Married and filing jointly – $181,000 – $191,000
For a Traditional IRA the MAGI limit to for a partial deduction are as follows:
Single- $60,000 – $70,000
Married and filing jointly – $96,000 – $116,000
married and filing separately – $0 – $10,000
Those with spouses who don’t earn income – $181,000 – $191,000
If you have the ability to take advantage of contributing to your IRA or self-directed IRA then do it now before it is too late. You don’t want to miss out on contributing to 2014 and you have already missed another year to contribute. If you let this pass you by then you are ultimately letting potentially the best thing you could do for your retirement to pass you by.
If you just don’t have the capability to save for your retirement yet then get yourself in a position to be able to invest yearly in your retirement account. One way you can get yourself into a position to be able to contribute year after year into your retirement account is to watch your spending. For more help on your spending check out, “Millenials Learned From The 2008 Recession“.
If you would like to contribute to your already open self-directed IRA account then contribute here.
Contact us for more information about contributing to your self-directed IRA today.
Author: Nick Barker