If you’re on track to max out on your 401(k), it’s a huge accomplishment, so congratulations! If you’re one of the few who’s been able to stash away the full $22,500/year allowed by the IRS, there are still other investment options you can start to take advantage of now so you have greater financial security later.
Here are a few ways to supplement your 401(k) contributions while enjoying possible tax benefits in the process:
Roth and Traditional IRAs - Save for retirement with tax-free growth or on a tax-deferred basis
Health Savings Accounts (HSAs) - Tax-advantaged account for high-deductible medical plans
Universal Life Insurance - Cash value policy that grows tax-deferred and may pay out tax-free
529 College Savings Plan - College savings plan that offers tax benefits
Investment Accounts - Outside of traditional retirement saving accounts, you can invest after-tax dollars and earmark those for retirement savings
While this list points out other potential options, it’s always a good idea for us to weigh the pros and cons of each together. Let’s find out what would truly be the best fit for your lifestyle and retirement plan. Please reach out to me today at email@example.com or (804) 665-1589.
Maxed Out 401(k)? What Now?
September 22, 2023