The theme this week on the Retirement Quick Tips Podcast is: Best Retirement Savings Accounts in 2022...And How To Fund Each One
Today, I’m talking about funding your IRA in 2022. Surprisingly, for most people this is going to come toward the bottom - after you’ve funded your HSA, your workplace retirement savings plan, and made a dent in your car or mortgage debt for the year.
Why so low on the priority list? Unlike the HSA and 401k which likely have matching dollars from your employer, the IRA has no additional match benefit and the contribution limits are much lower compared to most retirement plan accounts that you have at work.
There are some other reasons too - like depending on your income and whether or not you or your spouse are covered by other retirement savings plans - you may not even be able to save in an IRA.
But if you do make it this far in the retirement savings hierarchy for 2022, here’s what you’ll need to know about funding your IRA:
- Again - eligibility and income limits apply to IRAs, so make sure you’re eligible first
- If your income is below the threshold you’ll most often want to consider funding a Roth IRA first, before funding a traditional IRA
- Max contribution for IRA and Roth IRA in 2022:
- $6,000 (under 50)
- $1,000 catch up if 50 or older
That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.
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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance