Live Too Long - The amount of money you can put away pre-tax goes up with the Social Security cost of living increases, rounded to the nearest thousand. Here is a quick guide on what you can use for 2017.
When planning for retirement, don’t forget that the money you receive from some of the above sources will be taxable at ordinary income tax rates. Social Security will also contribute to taxable income according to its rules. Only the Roth IRA will escape future taxation, but it does not offer a tax deduction now. Make note of these different tax regimes when planning for your future. Remember, it is not how much money you make that matters, it is how much you get to keep.
For more information, visit www.irs.gov