Halloween parties are right around the corner and everyone is focused on what Game of Thrones character they are dressing up as this year. But while everyone was out last week gathering their gear for the dragon princess costume (nailed it) the IRS released the new contribution limits for tax advantaged accounts for 2018. The big three that everyone should be concerned with are the 401(K), IRA, and HSA accounts.
2017/2018 Contribution Limits
Does It Matter?
Hopefully it does for you because you have been taking advantage of your 401(k), IRA, and HSA. Those who have been maxing out these accounts and investing in a diversified portfolio have been rewarded handsomely during this bull market. The reality is most people do not take advantage of these accounts. Whether it is lack of access, mistrust of the stock market or people being misinformed many are missing out.
I Encourage You To Do Something.
I will spare everyone the compound interest calculator showing the example of what the extra $550 contributed over 40 years could mean at retirement…not! It’s $153K after 40 years of growth @ 8%! Everything adds up over time take advantage of the wins you are given today because these could be changed in the future.
If you are still working your way out of debt, or building to the savings level to be able to max out your tax advantaged accounts keep going! Stay motivated frequent sites like this and remember the reasons you are working so hard. The worst thing you can do is nothing make sure you are progressing in some way every year. The average consumer will run out and drop a grand on the iPhone X yet they have trouble coming up with $400 dollars for an emergency. Do something that lasts in 2018 and put your money to work for you!
What Are Your Thoughts?
- Are you maxing out your tax advantaged accounts?
- Does your employer offer a 401(K) and HSA?
- What are you dressing up as for Halloween?