Did you get a late start?
The IRS wants to help you. Really.
If you’re 50 or older and your retirement plan isn’t where you’d like it to be, the IRS wants to lend you a hand. Really, it does! The IRS has taken steps to make it easy for you to sock money away for your future.
Here's how it works:
You can play “catch-up” by contributing more into IRAs (Roth and traditional) and workplace savings plans like 401(k)s, 403(b)s, 457 plans, and simple IRAs if allowed by your employer.* These contribution levels are substantial and a smart way for you to make up for lost financial time.* For example:
- You can invest an additional $5,500 in a 401(k) for a maximum annual amount up to $22,000.
- For a traditional IRA, you can contribute an additional $1,000 in 2007 and thereafter.
- For Roth IRAs, you can save up to $6,000 in 2009. To be eligible, your modified adjusted gross income must be between $105,000 and $120,000 (for an individual) or $166,000 and $176,000 (as a couple filing jointly).
- With a fixed annuity, there is no annual limit on contributions, which may be a good way to catch up your retirement savings, considering you may have already maxed out your contributions to your workplace savings plan [e.g., 401(k), 403(b), and IRA].**
But bear in mind, in order to maximize the savings time you have left, you must formulate a plan—and stick to it! That means:
- Saving the right amount, on a regular basis and in the right accounts
- Shielding your savings by diversifying your portfolio
- Routinely working with one of our Financial Consultants to fine-tune your portfolio and staying abreast of economic and market shifts.
Call 800.XFCU.222 (800.932.8222) or visit us online to schedule an appointment with one of our Financial Consultants today!
*Catch-up contribution limits only apply to those ages 50 and older.
**May be subject to insurance company maximums.
Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims-paying ability of the issuing company. Withdrawals made prior to age 59 1/2 are subject to a 10%
IRS penalty tax, and surrender charges may apply.
be in the know
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No Credit Union Guarantee. |
May Lose Value. |
Products offered are not obligations of the credit union.
Securities & Insurance Products offered through LPL Financial & its affiliates, Member FINRA/SIPC.
Xceed Financial Credit Union and Xceed Financial Investment Services are not registered broker/dealers and are not affiliated with LPL Financial.
The LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents of the following states:
AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WA, WI, WV
LPL Financial Consultants do not offer tax advice. For tax assistance, please refer to your accountant or tax professional.
IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax‑deferred. Therefore, an annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These include lifetime income, death benefit options, and the ability to transfer among investment options without sales or withdrawal charges.
