Saving for retirement can be tricky and demands foresightedness. It is contingent on factors like retirement age, planned spending in retirement, average life expectancy and how much one would like to save. It is tough to determine the right investment vehicle for maximum returns.
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
- If you qualify for opting traditional IRA’s deductible contribution, invest around $5,000 there particularly if you would stay in equivalent income tax bracket during retirement, when withdrawing. You will get pretax deduction with ample investment avenues. Next, carry on with 401(K) till the maximum you can invest has been reached.
- If you qualify for Roth IRA, put excess amount here to withdraw qualified earnings tax-free. Roth IRA never compels one to withdraw required minimum distributions when he reaches 70½ of age, unlike qualified matching or traditional IRA plans.
- If you do not qualify for any of the above, it is prudent to carry with 401(k).