IRA is a great way to save for your retirement, and the more you contribute,
the better off you will be. By understanding tax guidelines and making
contributing a priority, you can maximize your IRA savings. Talk to one
of the member representatives at your credit union if you’re unsure
about the basics of your IRA, and try these tips to keep money flowing
into your IRA account.
Understand the Contribution Guidelines
Every year, the IRS sets
contribution limits to both Roth and traditional IRAs. These limits apply collectively across
your IRAs, so if you have more than one, you can still only contribute
up to the maximum amount for that tax year. If you understand these guidelines,
not only will you ensure you receive the best tax benefits for your contributions,
but you can also budget for monthly contributions that allow you to save
the ceiling amount.
Set Up Direct Deposits
The easiest way to save money is to not be tempted to spend it in the
first place—and the more you contribute to your IRA, the longer
your money has to earn interest for your retirement. Consider setting
up a regular direct deposit from your checking account to your IRA account.
If you set this up for the same day or the day after your paycheck hits
your account, the money will go into the IRA before you even see it in
your account and factor it into your available spending money.
Look for Extra Cash
Even if you are struggling to make the maximum contributions to your IRA
because of your income, you can still find avenues to generate extra money
to fund it. Have a yard sale, sell collectables online, cancel your cable,
or consider a side job. Even putting a little extra into you IRA can have
a significant impact on your retirement.
GCS Credit Union makes retirement planning easy with traditional and Roth
IRAs that offer competitive dividends with no set-up fees. Talk to a representative
at our credit union in O’Fallon today about IRAs, online banking,
and our other financial services by calling (618) 797-7993.