The Year of the Pig

 

Facts & Figures to Help You Build Wealth

  2019: The Year of the Pig

       Should you put more money

              into IRA accounts this year?

 

In 2019 . . . February’s two-week Chinese New Year celebration ushers in the Year of the Pig. According to Asian culture, anyone born under the sign of the sow stands to reap great rewards this year. Not only 2019’s newborns are lucky. The barnyard boar is also a good omen for everyone else born in previous  pig years, including 1935, 1947, 1959, 1971, 1983, 1995 and 2007.

 

In the Chinese zodiac system, pigs symbolize wealth.

Their plump appearance is believed to bring on abundance.

 

Don’t fret, though, if your birthday occurred in another animal year, such as the Year of the Rat or the Year of the Dog. If you invest in IRS-approved IRA accounts, 2019 could be a good year for you, too.

 

Internal Revenue Service raises limits on IRAs

The Internal Revenue Service (IRS) raised limits this year on how much money people can put into tax-deferred accounts, such as traditional IRAs, Roth IRAs, 401Ks and deferred annuities. That means 2019 could be profitable for anyone who takes advantage of the following tax-deferred accounts:

 

  • 401K Plans
    • Annual contribution limits went up to $19,000 ($25,000 if you are age 50+)
  • Traditional Individual Retirement Accounts (IRAs)
    • Limit raised to $6,000 annually ($7,000 if you are age 50+)
  • Roth IRAs
    • Also capped at $6,000 per year for contributions ($7,000 if you are age 50+)
  • Deferred Annuities
    • Contributions remain unlimited. You can still deposit any amount per annum.

 

Will you cash in on the Year of the Pig?

To encourage more Americans to save some of their earnings, the U.S. government gives tax breaks to citizens who set aside a few dollars for the future each year. If their annual contributions are deposited into any of the above Individual Retirement Accounts (IRAs), savers are entitled to valuable tax benefits.

 

Rather than retirement accounts, IRA savings vehicles could be called tax-reduction accounts. They actually reduce the amount of money a person owes in taxes at the end of each year that he or she invests in them or could earn you tax-free growth to benefit you later. Most IRA owners opened their accounts purposely to save money on taxes . . . while hanging onto more of their hard-earned dollars. For additional details on the benefits of tax-deferred investing, contact Ron VanSurksum at Advanced Asset Management. Email: rvansurksum@aamllc.com or call him at (616) 531-5220 or (616) 450-8439.

 

Manage Your Money . . . helpful financial facts provided for you by Advancd Asset Management LLC                           Follow our blog: aamllc.com               Ronald Van Surksum, CFP                4555 Wilson Ave SW – Suite 2               Grandville, MI 49418

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