Your IRA is a great investment tool for your retirement. For 2021, you can contribute up to $6,000 into your IRA ($7,000 if you’re age 50 or older). If you haven’t filed your tax return yet, you can still make 2021 IRA contributions until April 18th, 2022.
Why should you maximize contributions?
Maximizing your contribution allows for the greatest growth of your investment. The example below illustrates how much your investment could grow over a 10 year period depending on your annual contribution.
The above example assumes a 7% expected rate of return. Contributing $7,000 is only possible for those 50 and older.
Compared to someone who contributed $1,500, maximizing your contribution at $6,000 can give you up to $62,174 more in 10 years. Compared to someone who contributes $3,500, contributing an extra $2,500 annually can give you up to $34,541 more over a 10 year period.
We’re All In
We’re here to help you prepare for a comfortable future. Please do not hesitate to reach out to us if you have any questions about funding your IRA. You can send us a note below or call us at (410) 363-7211.