Are You Saving Enough for Retirement?

 It doesn’t matter how young you are, it’s never too old to start saving for your retirement. In fact, the sooner the better. If you start saving in your 20’s and stick to a plan, you should have sufficient retirement funds when you are ready to retire. It’s a good idea to review your retirement plans at least once a year. To make it easier to remember, set the review at tax time or even when you change the batteries in your fire alarms each year.

It’s a great idea to take the full advantage of your allowable contributions as well as any amounts your employer matches. The contributions you make to employer-sponsored retirement plans reduce your taxable income because your employer deducts the amount you specify from your paycheck before taxes.

Retirement plan contribution limits did not increase for 2016. This year you can contribute $18,000 to your 401(k), plus another $6,000 if you're celebrating your 50th or older birthday during 2016. You can save up to $12,500 in your SIMPLE account this year, plus another $3,000 if you're age 50 or over.

At Summit CPA we can assist you with all of your financial needs. Contact our office at (855) 977-7623 to schedule an appointment with our Virtual CFO.