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Strategies |
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Maximize Your Contributions To Employer-Sponsored Retirement Plans
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If you're eligible, sign up as soon as possible for your employer-sponsored
retirement plan, such as a 401(k) or 403(b). Try to max out your contribution and put in at least enough to take
advantage of your employer's matching contributions. For 2009, you can contribute up to $16,500 in a 401K program. Plus, if you're age 50
and over, you can take advantage of a special "catch-up" provision that allows you to contribute an extra $5,000. These strategies will not only give you tax-deferred growth potential, they'll also lower your current taxable income by reducing your adjusted gross income (AGI).
Next: Think About an Individual Retirement Account
This information is general
in nature and is not intended to constitute tax advice. Please consult
your tax advisor for more detailed information on tax issues and
for advice on your specific situation.
Investors should consider the investment objectives, risks, charges, and expenses of a fund carefully before investing. Download a prospectus that contains this and other information about a fund, and read it carefully before investing.
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