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How to Invest for Retirement When You Have Reached Your IRA Contribution Limits
- April 8, 2022
- Phil Cannella
- Blog
- 0 Comments
If you are saving for retirement, there are several tax-advantaged investment vehicles you can use to build a healthy nest egg. These include IRAs, 401k plans, 403b plans, and more. A Roth IRA is another type of retirement account that allows you to pay taxes upfront to avoid having taxes taken out when your money is withdrawn. While these accounts are excellent choices for retirement saving, they do carry one drawback: your yearly contributions are limited. Once you reach the yearly limit, you will have to find another investment vehicle to continue building your retirement savings. If you are unsure about how to invest your money once you have reached your contribution limits, the team at Crash Proof Retirement has some ideas.
Catch-up Contributions
As previously mentioned, some retirement accounts have a contribution limit, and if you want to maximize the potential of your investments, it is important to reach this limit every year. Did you know that some individuals can save even more? The IRS allows catch-up contributions for investors who are aged 50 or over at the end of the calendar year. Contribution limits and catch-up contributions for 2022 are:
| Account Type | Contribution Limit | Catch-up Contribution | Total |
| Traditional IRA | $6,000 | $1,000 | $7,000 |
| Roth IRA | $6,000 | $1,000 | $7,000 |
| SIMPLE IRA | $14,000 | $3,000 | $17,000 |
| 401(k) | $20,500 | $6,500 | $27,000 |
| 403(b) | $20,500 | $6,500 | $27,000 |
| Most 457 Plans | $20,500 | $6,500 | $27,000 |
If you are a public employee or work for a non-profit, you may be offered a 457 plan. If you have a 457(b) plan, please note that you may be able to make double catch-up contributions each year. It is also important to remember that some investments like a Roth IRA have income limitations which dictate whether an investor can put their money into one of these accounts.
Crash Proof Retirement Vehicles
Once you have reached all your contribution limits, it is important to find a way to invest for retirement that will not put your nest egg at risk. Many popular investments, including stocks, bonds, mutual funds, and volatile cryptocurrencies, carry a tremendous risk for retirement-phase investors. The value of these investments can fluctuate wildly with the stock market or in response to global events—a fact that can potentially devastate your retirement savings overnight. Those who are in or near retirement cannot afford to lose their savings due to a stock market crash.
Luckily, for investors interested in a safe alternative, there are a range of financial vehicles that are guaranteed to prevent you from losing your principal during a market crash. We call these Crash Proof Vehicles. The Crash Proof Vehicles not only protect your nest egg from the stock market rollercoaster by guarantying that you’ll never lose a penny of your principal, they also credit interest at rates similar to risk investments on the stock market. If you have reached your contribution limits for the year and still have money to invest, you owe it to yourself to find out more about the Crash Proof Vehicles and how they can fit into your retirement plan in Wayne, PA or anywhere nearby.
It’s never too late to protect your retirement with the proprietary Crash Proof Vehicles offered through the exclusive Crash Proof Retirement System. More than 5,000 consumers have utilized these vehicles to Crash Proof their nest eggs and have achieved retirement peace of mind. You can start your exclusive Crash Proof Retirement education by calling 1-800-722-9728 or by filling out the online form on our contact page to schedule your personal appointment with a licensed educator. To learn more about the exclusive Crash Proof Retirement System you can also reserve your seat at one of our upcoming educational events by visiting our events page on www.crashproofretirement.com or calling 1-800-722-9728.
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