New 2022 IRS Investment Limits Helps Early Retirement
Retirement accounts are a great way to save for the golden years. Saving for retirement means generating passive income when we’re no longer working. The IRS has increased limits and changed the eligible income ranges for 2022, creating more opportunities to build a more substantial nest egg and possibly even retire early.
There are two ways to fund an account when saving for retirement:
#1 Tax-deferred retirement plan:
This plan allows the contribution of pre-tax dollars into a retirement account. With a traditional IRA or 401(k), investors pay taxes when they withdraw funds from the retirement account, not when they make the contributions. For example, if an individual’s gross income is $2,000 per week but that individual contributes $200 to a tax-deferred retirement plan, then the taxable income is reduced to $1,800. The savings can help investors minimize their tax obligations by lowering their income and potentially changing tax brackets.
#2 Tax-free retirement plan:
In non-traditional retirement plans like a Roth IRA or Roth 401(k), taxes are taken before the contribution goes into the account. For example, if an investor saves $100,000 in a tax-free retirement plan that ultimately grows to $500,000, the total amount is entirely tax-free upon withdrawal. The contribution limit in 2021 was $19,500 but will be increasing to $20,500 in 2022 for 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. Although the Roth IRA contribution limits remain unchanged, participation income limits have increased. To be eligible, the income limit for a single filer must be less than $129,000 or $204,000 for married and joint filers.
Easy Saving Tips for Early Retirement:
1. Pay yourself first and maximize retirement plan contributions.
2. After age 50, add $1,000 annually while working.
3. Do not withdraw funds early from your retirement account.
The Family Business Fund‘s high-yield fixed income investment can now be added to IRA portfolios through NuView Trust. NuView Trust is a custodian that allows self-directed individual retirement accounts to invest in alternative investments for retirement savings. Investors may be able to roll over retirement plans into NuView’s self-directed plan.
The Family Business Fund‘s 15% annualized returns could be a great source of passive income. Ask your financial adviser today about adding the Family Business Fund to your retirement portfolio!
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Company Name: Family Business Fund
Contact Person: Douglas Muir
Email: Send Email
Phone: 5612892172
Address:433 PLAZA REAL STE 275
City: BOCA RATON
State: FL 33432
Country: United States
Website: www.familybusinessfund.com
