1 There’s still time to contribute for 2023
You can save up to $6,500 ($7,500, if you’re age 50 or older) in your traditional or Roth IRA1 (2023 IRA limit).2 If there’s room in your budget, consider saving the maximum amount to help you build your retirement savings. And this may be a surprise—you don’t have to contribute all of it this year. You have until April 15, 2024, to make your IRA contribution for 2023.
2 Contributing now can help put time on your side
The sooner you put money in your IRA, the more time your contributions have to compound. What’s compounding? It’s when your IRA contributions generate investment earnings, which go back into your account, giving you more money to potentially generate more earnings, and so on. And while it’s not guaranteed, compounding can have a significant impact on your retirement savings.
3 Your traditional IRA contributions may be tax deductible
Any money you put into your traditional IRA by the April IRA contribution deadline could help reduce your 2023 federal income taxes.3 That’s because you may be able to deduct all or some of your contributions, depending on:
- Your tax filing status
- Your modified adjusted gross income4 (IRA tax deduction income limit)
- Whether you or your spouse is covered by a retirement plan at work
Strengthen your financial future today
The end of the year is rapidly approaching. Use the final few weeks to give your retirement savings a boost. Every dollar you save in your IRA today can help you enjoy tomorrow.
Need help? Consider working with a tax or financial professional who can help you make the most of your IRA based on your goals and financial situation.
If you have a John Hancock IRA, you may log in here.
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.