If you are a high income earner or are trying to make up for lost time in the retirement savings game, you may be looking for ways to increase contributions to your retirement plans beyond the IRS maximums.
If you’re over the age of 50, you can put a hefty amount in the company retirement plan. In 2019 the max is $25,000. What if you want to make higher annual contributions, or you don’t have access to a company retirement plan?
Here are some options:
- If you are married, you can consider utilizing your spouse’s access to the company retirement plan.
- If your income qualifies, you can make maximum contributions to Roth IRAs and traditional IRAs (check with your accountant on income limitations).
- If you’re not hung up getting a tax deduction, you can make unlimited contributions into non-retirement accounts. If properly structured, later withdrawals from some of these account types can be income tax-free by using specialized IRS guidelines.
- If you are self-employed, there are options for SEP IRA, Simple IRA, and Solo 401(k). Which applies to you will depend on the structure of the business and the number of employees, but could allow amounts well in excess of traditional company retirement plan options.
- Finally, as a self-employed individual you may be able to set up a pension plan that allows for maximum tax-deductible contributions. Some pension plans are low-cost and easy to administer.
If you have questions about maximum contributions for your circumstance, Contact me.