Get to know how much you can contribute to a Roth IRA or Traditional IRA, 401k, and HSA for 2023! Add me on Instagram: michellemarki

If you max out these retirement accounts, you can make the most of compounding your investments!

Timestamps:
0:00 Retirement Investing 2023 Intro
0:34 Contribution Limits 2023
1:59 Roth IRA
6:02 Traditional IRA
7:42 401k
10:16 Solo 401k, SEP IRA, SIMPLE IRA
10:57 Health Savings Account (HSA)
14:27 Invest To Retire Comfortably

Since it’s never too early to start saving and investing for retirement, I feel strongly passionate about maximizing my retirement investments and helping my friends and family to do the same. So I hope the detailed information I put together will be helpful to your retirement investing education!

I love Roth IRAs the most because you are not forced to take a required minimum distribution (RMD) from them, unlike a Traditional IRA, pre-tax 401k, and Roth 401k.

The major benefit with the Roth IRA is you pay taxes while you are currently in a lower income tax bracket, and enjoy tax-free withdrawals during retirement. You can grow contributions and earnings tax-free with a Roth IRA so you get the tax break later!

With a Traditional IRA where you get the tax break now, you don’t pay taxes on contributions and earnings now if you are in a higher tax bracket, but pay ordinary income tax on distributions during retirement.

The 2023 annual contribution limits for either Roth IRA or Traditional IRA are: $6,500 if under 50 or up to $7,500 if over 50.

A 401k is often an employer-sponsored or workplace defined contribution plan, and some plans allow for a total maximum contribution in 2023 of up to $66,000 if under 50 or $73,500 if over 50. But 2023 the elective contribution annual limits are $22,500 if under 50, up to $30,000 if over 50. Your employer may or may not choose to match your contributions to the 401k plan.

I also show info for the Solo 401k, which is the best of all worlds, and the SEP IRA (Simplified Employee Pension Individual retirement account), and SIMPLE IRA (Savings Incentive Match Plan for Employees Individual retirement account) for either the self-employed and/or small business owners.

A Health Savings Account (HSA) is the best of all worlds because it is triple tax-advantaged, where you get to do tax-free: 1) contributions, 2) qualified medical expense withdrawals, & 3) investment earnings growth!

If you max out your retirement contributions across the Roth IRA ($6,500), 401k ($22,500), and HSA ($3,850) that is already $32,850 you could be socking away toward retirement if you’re under 50! You could be putting away more than $41,000 if you’re over 50 across these accounts depending on if you have an individual or family HSA in addition to doing catch-up contributions.

So go out and save for retirement because millions of dollars are waiting for you to compound them!

If you’re interested in learning how to take control of your finances and start becoming an investor like Warren Buffett, check out my free PDF guide:

I look forward to making more investor friends! Please like and subscribe if you learned something or enjoyed my video. Thank you! 🙂

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Disclaimers: This content is for entertainment, information, education purposes only. Michelle is not a financial advisor and is not providing financial, investment, trading, tax advice, or recommendations. Please consult with a professional financial advisor with a fiduciary duty and responsibility if you need help in your situation. All trademarks, logos, and brand names belong to their respective owners….(read more)

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As we approach 2023, retirement investing has become a popular topic on the minds of many individuals. Three investment options that are often discussed are the Roth IRA, 401k, and Health Savings Account (HSA). In this article, we will delve into each of these options to better understand their benefits and any potential drawbacks.

First, let’s start with the Roth IRA. This investment option is an individual retirement account that offers tax-free withdrawals in retirement. Contributions to a Roth IRA are made with after-tax dollars, which means that the money you withdraw in retirement will not be taxed. Additionally, there is no age limit on contributions, meaning that you can continue to contribute to your Roth IRA for as long as you are earning an income.

One potential drawback to a Roth IRA is that there are income limits for contributions. In 2023, if you make more than $140,000 as a single filer or $208,000 as a married couple filing jointly, you will not be able to contribute the maximum amount. Additionally, there are contribution limits each year, and in 2023, the limit is $6,000 for individuals under 50 and $7,000 for individuals over 50.

Next, let’s discuss the 401k. This investment option is a retirement savings plan offered by many employers. The contributions to a 401k are made with pre-tax dollars, which means that the money is taken from your paycheck before it is taxed. Employers will often match contributions up to a certain percentage, which can help to maximize your savings.

One potential drawback to a 401k is that you will be taxed on withdrawals in retirement. This means that the money you withdraw will be taxed as income, which could potentially be at a higher tax rate than when you were working. Additionally, there are contribution limits each year, and in 2023, the limit is $19,500 for individuals under 50 and $26,000 for individuals over 50.

Finally, let’s discuss the Health Savings Account (HSA). This investment option is a tax-advantaged savings account that is used to pay for medical expenses. Contributions to an HSA are made with pre-tax dollars, which means that the money is taken from your paycheck before it is taxed. Additionally, the money in the account can grow tax-free.

One potential drawback to an HSA is that you can only contribute if you have a high-deductible health plan. Additionally, there are contribution limits each year, and in 2023, the limit is $3,650 for individuals and $7,300 for families.

In conclusion, these three investment options are worth considering as you plan for your retirement in 2023. Each option has its benefits and potential drawbacks, so it’s important to do your research and consult with a financial advisor before making any decisions. With careful planning, you can maximize your retirement savings and secure a comfortable future for yourself.