Chase Private Client | Our Thinking | Max your IRA

Skip to main content
Our Thinking

Don't Miss Out: Five Strategies for Getting the Most Out of Your IRA

Author: Linda Ward

Linda Ward, Executive Director, Head of Retirement and Education Solutions

Don't Miss Out: Five Strategies for Getting the Most Out of Your IRA
Getting the Most From Your IRA
1.
Contribute early in the year
2.
Contribute for a nonworking spouse

 

The Power of Tax-Deferred Compounding

Tax-deferred retirement accounts provide added savings benefits vs. taxable accounts

The Power of Tax-Deferred Compounding

Source: J.P. Morgan Asset Management. Assumes $5,500 after-tax contributions at the beginning of each year for 30 years and 6.5% annual investment return. IRA account balance is taken as a lump sum and taxed at the 15%, 25% and 33% federal tax rate, respectively, at time of withdrawal. Taxable account contributions are after-tax and assume a 33% federal tax rate during accumulation. This hypothetical illustration is not indicative of any specific investment and does not reflect the impact of fees, expenses or early withdrawal penalties. The chart is shown for illustrative purposes only. Past performance is no guarantee of future results.

3.
Take advantage of “catch-up” contributions

 

“If you aren’t planning on making an IRA contribution this year, think again. Even if your contribution isn’t tax deductible, every dollar you contribute is a step toward achieving the retirement you want. And every dollar you don’t contribute is a lost opportunity.”

 

LINDA WARD

EXECUTIVE DIRECTOR, HEAD OF RETIREMENT AND EDUCATION SOLUTIONS

4.
Contribute and convert
If you do not have an existing IRA
If you have existing IRAs

Traditional vs. Roth IRAs: Key Differences and Similarities

Source: Internal Revenue Service, January 2018

Features Traditional IRA Roth IRA
5.
Kick-start saving for the next generation.

 

Five Questions to Ask Your Advisor

  • Can I deduct my IRA contribution if I have a retirement plan at work?
  • Does it make sense to consolidate my IRAs?
  • Should I change my beneficiary designations?
  • How much income will my retirement accounts provide in retirement?
  • Am I saving enough?
NEXT STEPS

You may want to consider consolidating your retirement accounts. If you’ve changed jobs over the course of your career, you’re very likely to have accumulated retirement savings in different accounts. Consolidating can help you keep track of your holdings and more carefully align your investment strategies with your retirement goals. Review your options and consider the benefits of consolidating your retirement savings accounts, including whether consolidating makes sense for your situation.

 

Savvy IRA strategies are just one way to save for the retirement you want. Whether your retirement is in the near future or years away, now is the time to review your plans. Whether you invest independently, or work with an Advisor, you should determine whether you’re on track to meet your goals and look at your retirement plans holistically.

 

JPMorgan Chase & Co. and its affiliates do not render accounting, legal or tax advice. Estate planning requires legal assistance. You should consult with your independent advisors concerning such matters. Investment ideas presented herein may not be suitable for all investors.

 

This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Investing, asset allocation and diversification do not guarantee investment returns and do not eliminate the risk of loss. Speak with your J.P. Morgan representative concerning your personal investment needs.

RELATED ARTICLES

Recommended for You

Benefit from J.P. Morgan’s insights and thought leadership that cover everything from investment strategies and retirement advice to market perspectives and economic outlooks.

SEE OUR THINKING
SEE OUR THINKING