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I am over 50, my new employer doesn't offer retirement benefits? What are my options for funding my retirement account?

Feb 16, 2016 by Marcelino in  |  Flag
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It sounds like your options for a tax-deferred saving are a bit more limited than you want, but you still have options. Here are some things to consider:

  • IRA or Roth IRA for you and your spouse if you are married. If you are both at least 50, then you can contribute $6,500 each, or $13,000 of this year's income into a tax deferred account. You'll want to consider your present and future tax situation to determine which choice is better for you.

  • Health Savings Account. Depending on your medical insurance, you may be eligible for this account. There are clear tax advantages whether or not you have medical expenses to pay. Eventually this account is essentially a Traditional IRA that can be accessed at age 65 without penalty (you just pay the taxes like you would on your IRA). The 2016 limit is $3,350 for an individual or $6,750 for a family, or $1,000 higher if you are 55+.

  • Retail investments. If you have maxed out (or are not eligible for) the first 2 options, but still have money for savings, you can fund a taxable account. The obvious difference is the higher tax burden, since each year you'll pay taxes on your contributions (as they're considered income), and you'll pay taxes on the gains made when you eventually sell the investments.

Comment   |  Flag   |  Feb 17, 2016

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Marcelino, Aaron nailed it. Your options may be limited, but they are pretty good. Remember to safe regularly and diversify and you will have a comfortable future. Good luck!

Comment   |  Flag   |  Feb 25, 2016

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