As we kick off a new year, it’s often a time to reevaluate our goals and make adjustments based on the current situation and future ambitions.
Of course, this couldn’t be more true when it comes to retirement planning and investing. As macroeconomic conditions change, our goals for the future may change as well.
This means making adjustments to your Roth IRA contributions to match current conditions and changes to contribution limits.
In this article, we’ll look at ways to maximize your Roth IRA in 2023 to help you reach your retirement goals.
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Take Inventory Of Your Current Retirement Goals
To start, you will want to begin the new year by looking at your current retirement strategy and ensuring it still aligns with your goals for retirement.
This means you have to take your age and years until retirement into consideration.
For example, do you need to play catch-up after falling behind on your contributions? If so, now is the time to calculate how much catching up you need to do. Putting this off for another year will only make things worse, so be honest with yourself and set goals for filling any gaps that may exist in your retirement strategy.
Take Advantage Of Increased Ira Contributions In 2023
If you are looking to increase your IRA contributions, 2023 is the perfect year to start. The maximum contributions have increased to $6,500 per year for those 50 years old and younger.
For those over 50, you can take advantage of an additional $1K per year above the $6500 limit. This is known as a catch-up contribution and is perfect for those who realize their investment targets may have been too low in recent years to reach their goals.
Ira Contribution Deadlines
After determining your contribution amounts, look into your finances to discover how long you will need to reach that contribution.
For some, they may be able to make a lump sum contribution. While others may need the full time to contribute over months to reach their goal.
Either way, set a realistic deadline with your IRA contributions that allow you to hit your targets comfortably.
Use Tools To Make Sure You Contribute On Time
It’s very easy to set up automatic deposits through your bank or even your employer. These deposits can be automatic each pay period or each month and go directly to your IRA.
This can be a great way to make sure your contributions are made on time, and you reach your goals. Check with your bank or employer to learn how to easily set up these easy automatic contributions.
ICCNV is an innovative advisory firm full of experienced wealth management experts who are focused on making sure their clients can live the lifestyle they dream of in retirement through maximized investment strategies. They can help you reach your retirement goals without having to sacrifice the lifestyle you enjoy.