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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

  • Writer's pictureNick Allen

Making Up for Lost Time – Funding an IRA for 2023

Updated: Feb 11

Each year, as we turn our calendars to January, we brace for the inevitable change that comes with a new year. The IRS has been on a tear regarding changes, increasing the allowable limits for retirement plan contributions in consecutive years. While you’re likely aware that you’re now able to contribute $7,000 to your IRA as opposed to last year’s $6,500 (investors under age 50), you may not be aware that the beginning of the year offers a unique advantage to you if you were not able to get your IRA funded last year.

 

The recommended 15%

The recommended rule of thumb for stashing (and investing) cash for retirement is 15% of your annual gross income. The reality is that sometimes, especially in a high inflation environment like 2023, life happens, and that 15% can get cut down or even eliminated in some cases. While it may feel like you’ve missed out on the ability to contribute to your Roth or Traditional IRA for 2023, it's actually not too late (yet). If you missed out on contributing or at least maxing out your IRA last year, you can take advantage of a unique moment in time. Prior to filing your 2023 taxes, you have the ability to catch up by double-dipping and making both a 2023 and 2024 IRA contribution.

 

Let’s look at an example:

You planned to save $541 per month into your Roth IRA last year, but you had a number of bigger expenses pop up and found yourself needing to pause your retirement contributions for a few months, so you only contributed $4,875 to your Roth IRA during the calendar year. Now, it’s 2024, and you’re getting back on track. You would like to fund your Roth IRA with the additional $1,625 to max it out. You’d also like to begin funding your Roth IRA for 2024 at $583 per month. Because you have not yet filed your taxes for 2023, you can take advantage of this unique moment in time by funding both accounts.

 

Let’s examine another scenario together:

You’re new to investing and recently decided you want to use some of your extra savings to fund a Roth IRA. You’re bummed that you missed out on the opportunity to open and fund an account in 2023, but you’re ready to get going now with a single max-out contribution for the year. You have $13,500 ready to be invested and want to compensate for lost time. Again, before filing your taxes for 2023, you’re allowed to max out your IRA for 2023 at $6,500 and for 2024 at $7,000.

 

Other Catch-up Options

For investors who are over the age of 50, your catch-up contribution can be tacked onto those max contribution amounts (an additional $1,000 per year), allowing you to contribute a total of $15,500. This is not a specific feature of this year, but it is a unique feature of IRAs, as they are not funded through payroll deductions like employer plans. If you’re married and file jointly, you can make an even bigger splash by maxing out IRAs for each of you and your spouse for the two years in question. If you’re 50 or older, that number can be as high as $31,000 that can be saved across your IRAs during this sweet spot for contributions.

 

If you work with a financial institution like a bank or a brokerage like Charles Schwab, you’ll want to be specific about the years for which you’re making contributions. If you’re a client of Whitaker Myers Wealth Managers, you should let your financial advisor know that you would like to take advantage of this moment in time by funding your IRA for last year before it’s too late.

Kommentare


Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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