Wondering where your retirement income will come from? Learn how these investment opportunities can help you prepare for retirement.
Updated on March 30, 2020
If you meant to set aside more money for retirement or health expenses last year, you still have time.
Individual Retirement Accounts
You’ve heard it before, but it’s worth repeating: The sooner you start saving for retirement, the more money you’ll have later when you need it.
IRAs offer a tax-advantaged way to invest—and save—for retirement.
If you’d still like to contribute to an IRA for 2019, here’s what you need to know:
- Eligible individuals* can make contributions to a Traditional or Roth IRA for 2019 until April 15, 2020.
- Contributions for the 2019 tax year are limited to $6,000—or $7,000 if you’re 50 or older (thanks to a catch-up provision).
- You could receive a deduction for Traditional contributions or a tax credit for Roth contributions.
Health Savings Accounts
If you have a high-deductible health plan, an HSA can help you set money aside for current and future medical expenses.
To be eligible for an HSA, you:
- Can’t be covered by another health plan (with limited exceptions).
- Must not be enrolled in Medicare.
- Can’t be claimed as a dependent on someone else’s tax return.
If you want to contribute to an HSA for 2019, here’s what you need to know:
- Eligible individuals* can make contributions to an HSA for 2019 until April 15, 2020.
- You might be eligible to make tax-deductible contributions, earn tax-free dividends and withdraw money tax-free for qualified medical expenses.
- You don’t have to use all of your HSA funds each year. Your balance carries over—and remains with you regardless of changes in coverage or employment.
*Contact your tax advisor to verify eligibility and contribution limits.