Indianapolis elder law lawyers help people of all ages to prepare for their futures. We don’t just help seniors and we don’t just help people who are sick or at the end of their lives. We also assist people who are young, middle aged, and older to address the issues that matter to them when it comes to taking care of their families and assets.
One of the key ways that Indianapolis elder law attorneys provide assistance in planning for the future is providing advice about making a retirement plan. Many people do not have a pension at work that guarantees them income during their golden years, and most people cannot live on Social Security alone and shouldn’t try to do so because one minor financial setback could lead to financial disaster. It will be up to you to make an appropriate retirement plan if you want to be able to maintain a comfortable standard of living as a senior and Frank & Kraft can help.
At Frank & Kraft, we will work with you to set you goals for retirement, to make a plan to achieve the goals you have set, and to protect your assets as you accomplish your retirement goals and build a nest egg. Among the ways in which our legal team helps you to achieve your retirement goals involves helping you to take advantage of tax breaks aimed at making it easier to save for retirement.
Tax Breaks Available for Retirement Savings
There are a number of different accounts that you can use to save for retirement in order to get big tax breaks, as this Motley Fool article explains. The accounts that you should be investing in for your retirement in order to get the most tax savings include:
- A 401(k): If you have access to a 401(k) at your job, you can invest a maximum of $18,000 in pre-tax funds if you’re under the age of 50 and a maximum of $24,000 if you’re over 50. These limits are the limits for 2017, but limits can move up over time. The maximum limit you are allowed to invest with pre-tax money each year does not include your employer match, if your employer offers this perk. When your employer offers a matching contribution, they’ll contribute money to your 401(k) to match your own contributions, up to a certain percentage of your salary.
- IRA accounts: You could invest in a traditional IRA if you want to invest with pre-tax funds. You could also opt to put after-tax dollars into a Roth IRA and get your tax breaks when you withdraw the money. A Roth IRA can provide tax free growth, which is a big benefit. Maximum tax-advantaged contributions to both a traditional and Roth IRA for the year cannot combine to be more than $5,500 or $6,500 if you are over the age of 50.
- Health savings accounts: You can contribute to these accounts while you’re working and grow your balance with tax-free contributions. You’re only allowed to contribute to a HSA if you have a qualifying high-deductible health plan. But, if you have a HSA, you can allow your investments to grow and hopefully build up a big fund to cover costs of any medical care you might need during your senior years.
You should talk with an experienced attorney about whether you should invest in these types of accounts and in what amount you should invest so you can make certain to make smart choices for your situation.
Getting Help from Indianapolis Elder Law Lawyers
Indianapolis elder law lawyers at Frank & Kraft can offer you personalized one-on-one help in understanding the tax breaks that you are entitled to when saving for your future. We will assist you in learning the rules for investing in tax advantaged accounts so you can maximize your savings and we will help you to decide what kinds of accounts make the most sense for you to use.
If you are ready to be more proactive in saving for retirement so you can achieve financial security during your senior years and not have to worry about running out of cash when you are too old to work, contact Frank & Kraft today for help.
You can join us for a free seminar to get some general advice about retirement planning and asset protection. You can also give us a call at 317-684-1100 or contact us online to get personalized help with the creation of your retirement plan. Your retirement future rests in your hands, so reach out today to find out how we can help you.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.