First, why should a person listen to Giertz? Well, he had worked from Citigroup from 1989 to 1999. He then worked for Nationwide Financial where he has made many achievements. He has been a financial adviser for more than 20 years and knows how to give his clients the financial information that they need to be financially successful. He definitely has the experience to give people about what they should do when they retire.
David Giertz’s first tip is about 401(K) accounts. His tip is that the yearly contribution to these accounts will be increased by $18,500. If you are 50 or older at the end of 2018, the contribution will have been maxed at 6,000 per year to catch-up.
Giertz’s second tip is about Roth IRAs. He believes that the income limit for Roth IRAs will be increased in 2018. This will enable taxpayers to give more than in the past. At the moment, he says that the phaseout range for Roth IRAs is $120,000 to $150,000 for individual people, 0 to $10,000 for married people. If the married couple files their taxes together, the phaseout limit is $189,000 to $199,000. Another piece of IRA advice from Giertz is that the only way to give to Roth IRAs higher then the phaseout limit is by giving through a backdoor contribution. A financial adviser can tell people how to do a backdoor contribution.
Another popular savings account are health savings accounts. After a person is 65 years old, a person can actually take the whole amount out of their health savings account at the end of the year. They can do this even they don’t use the money in the account for medical expenses. If you are an individual, the contributions for HSA will be $3450 per year. A whole family can give $6,900 per year.
As far as Retirement Savings Contributions Credit, the income limits are going to drop to $63 for married people, $47.25 for the head of a household and $31.50 if you are single or a married person that decides to file separately.
David Giertz can provide this advice because of his past experience.