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Plan? That's right. Yeah. There's still corporate plans. I mean, you can put money into a Roth ira, but if you're putting money into, uh, a retirement plan at work, see if they've got a Roth version of it. That's Speaker 2 (13:28): Interesting. I'm gonna, I'm gonna see if, uh, if we have that, if we have that available. Speaker 3 (13:32): Huh. Now there's a strategy around that too. Once you take a look at how much you're putting away mm-hmm. take a look at, you know, what you are putting into which vehicle. So, you know, a lot of people just, you know, they, they wanna keep up with, keep upping that percentage that they're putting away. And so every time they have an opportunity, every time they get a raised, they'll put more and more and more into the 401k. And that's good. It's, it's good to put that money away. But again, we really question whether and how much you really wanna put away tax deferred. Because the biggest problem that I see with people that come in just before retirement is they've got this huge proportion of money in tax deferred, very little in tax taxable accounts, almost nothing in tax-free accounts. And that gets to be a tax planning problem in retirement. (14:17): So once you take a look at how much you're putting away, you may want to alter the strategy that you're using. So first start with the corporate plan. If you work someplace and they have a 401K or a 4 0 3 B, take a look at it and take a look and see if they match your contributions. If they match your contributions, you wanna do whatever you need to do to maximize that match. So a real common one, for example, is if you contribute money into the 401k, the employer may match that 50 cents on the dollar or may match it one to one up to a certain limit, like 6%. If that's the case, you wanna put in as much as it takes to maximize that match. If you don't, you're just leaving money on the table. But at that point, I would suggest stop doing that and take a look at what tax bracket you're in because it may make a lot of sense, especially if you're relatively earlier in your career, to put money into the 401k to maximize the match and then stop putting that money in and start putting money to a Roth IRA so that you can build up that tax free bucket. (15:19): Now if you've got a Roth 401K at work, fine, you wanna make sure that they will match the Roth contribution because in a lot of cases they will only match contributions into the traditional version of the 401k. So you wanna make sure if they offer a Roth version that you're putting, that you're putting it into the right bucket to maximize that match. So just make sure that you ask and that you find that out. But if what if what they offer is a, for a traditional 401k, put the money into maximize the match and then start putting money into the Roth IRA to start building up that tax free bucket. You can, you can go up to $6,000, $6,500 next year, you know, go up to that limit. And if you still wanna put money away, you can either go back to the qualified plan or there are some other more specialized kinds of tax-free savings vehicles that you could put it into. But that would be the first, the basic one, put money into the 401K to maximize the match shift over to the Roth ira. And then when you've done both of those things and max matched the or maxed amount, then you can start looking at what other possibilities and what the next, the next best thing to be would, uh, after that, Speaker 2 (16:30): A lot of exciting things happening. You make me really, you make me wanna stop and go back and look and see what's going on and how I can, how I can maximize that. Yeah. So, uh, we're gonna take a quick break and then when we come back we'll do the uh, 30 minute action plan. Stay with us. Speaker 4 (16:48):

35 - New IRS Limits 10-31-22 (Completed 11/01/22)

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