Searching for financial planners in Northern Virginia to start off 2020 the right way? Meeting with a financial professional is the best way to ensure that your money works for you.
Recently, the IRS has changed the contribution limits that you can make towards your retirement accounts starting in 2020. Let’s look at how this change can affect you.
Review Your Retirement Strategy for 2020
First, reviewing your plan is always a good idea. Financial planners in Northern Virginia recommend at least an annual review of benefits and contribution amounts.
New this year, the IRS has increased the limits for contributions that can be made to your retirement accounts. This is an incredible opportunity to boost your retirement savings.
In 2020, changes to contribution limits affect 401(k), 403(b), 457 and the Thrifty Savings Plan used by the Federal Government (TSP). The contribution limits vary with your age and plan.
How to Best Play Catch Up
For earners over 50, catch-up contribution limits have increased as well. This is something you and your financial planners will want to account for when reevaluating your savings goals.
Unfortunately, those who use an Individual Retirement Account (IRA) do not see an increase in their contribution limits.
Contribution Limit Changes for 2020
For 401(k), 403(b), 457 and TSP plans, you can increase your contribution from $19,000 to $19,500. For those 50 and older, catch-up contributions increase from $6,000 to $6,500.
While these increases may not seem significant, remember that they add up significantly over time.
A person who begins saving the maximum contribution per year for 20 years, assuming a 6% return, will earn more than $18,000 more than the same person only contributing $19,000 per year.
Financial Planners Northern Virginia
Bear in mind that most financial planners in Northern Virginia will recommend a comprehensive strategy for saving for retirement. Employer-sponsored accounts are a great start but should be supplemented with other investments.
The professionals at Argent Bridge Advisors are ready to help you create a plan designed to work toward your goals for retirement.
To learn more, call Argent Bridge to schedule a consultation at (833) 568-4900.