Should you contribute additional money to your retirement account this year?

With year-end nearly here, make sure you have contributed enough. 401(k) contributions lower your taxable income now, but increase taxable income during retirement at the time of withdrawal. All things considered, it may be in your best interest to contribute more of your December wage to your retirement account. This is especially true if you expect a lower tax rate during retirement. The 401(k) plan contribution limit is $18,500 per year (plus $6,000 if you are 50 or over). If you have not reached the limit and would like to contribute more, alert the administrator of your 401(k) plan so you can increase your contribution for the last month of the year.

With over 20 years of experience in public accounting, Amanda Bechen CPA owns Bechen & Company PC located in Wagner, SD, and can be contacted at 605-384-4200 or www.bechenco.com.