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What Are Your Options After You Have Maxed Out Your Retirement Contributions?

Aggressively saving for retirement can be a great way to prepare for the future. The money you invest right now can add up to a comfortable lifestyle in the future. There are a variety of financial planning strategies you can use to set money aside for retirement, such as an employer-sponsored 401(k).

What Are Your Options After You Have Maxed Out Your Retirement Contributions

Did you know that these retirement accounts usually have annual contribution limitations put in place by the IRS? If you want to be more proactive about saving for retirement and you are reaching the annual limits, then there are a few other types of retirement savings strategies you might consider. At this point, it is smart to talk to a financial advisor for comprehensive financial and retirement planning.

Here are a few solutions that can be included in your retirement plan:

Individual Retirement Account (IRA)

This retirement savings tool is an excellent supplement to use, helping you leverage tax benefits now and in the future. If you use a traditional IRA account, it means that you do not have to pay taxes on the contributions. Instead, the qualified withdrawals during retirement will be taxed.

Another option is a Roth IRA, which is a great tool if you need another way to invest your after-tax earnings. The benefit of this type of IRA account is that you do not have to pay taxes when you are withdrawing money in retirement.

Health Savings Account

These financial accounts are created to help people save for medical care, but they may also be used as part of a retirement strategy. Money that you put into an HSA is tax-deductible, and you do not have to pay taxes when the distributions are used for qualified health care expenses.

If you are using a high deductible insurance plan, then a health savings account goes hand-in-hand with your insurance. You are saving money on insurance premiums and can put that cash into an HSA instead. The funds will sit in the account until you need to use them for health care costs. Or you can start making non-healthcare withdrawals after the age of 65.

Other Investment Accounts

Once you have maximized your tax benefit accounts, including 401(k), HSA, and IRA, then it is time to look at other investments for your after-tax dollars. These accounts are not limited by annual contributions restrictions, but it is smart to work with a financial advisor and accountant since you will need to manage capital gains tax.

Our team at Bulman Wealth Group provides personalized, comprehensive planning for people of all ages and can partner you with a trusted accountant. Contact us to schedule a consultation so you can learn more about strategies for the best retirement planning for your unique financial situation.

Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an Investment Advisor in the State of California. Investment advisory services also offered through Retirement Wealth Advisors, LLC (RWA), an SEC Registered Investment Advisor. Bulman Wealth Group and RWA are separate entities, independently owned, and are not affiliated. Insurance products and services offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. 


Disclosure: All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Chris Bulman Inc. dba Bulman Wealth Group an SEC Investment Advisor notice filed in California, Pennsylvania, Texas, and Nevada. Investment Advisory Services also offered through Retirement Wealth Advisors, LLC. a Registered Investment Advisor. Bulman Wealth Group and Retirement Wealth Advisors, LLC. are separate entities, independently owned. Insurance products and services offered through Chris Bulman Inc dba BWG Insurance Agency and Ameritas Life Insurance Corp. CA Insurance License #0D57586. Being registered as an investment adviser does not imply a certain level of skill or training. Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the States of California, Pennsylvania, Texas, Nevada, or where otherwise legally permitted. Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital. 

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Any statements or opinions expressed should in no way be construed or interpreted as a solicitation to sell, or offer to sell, advisory services to any residents of any State other than the States where otherwise legally permitted.

Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.

Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.

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