CTC tips: max out your retirement contributions

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Do you have an IRA or a 401(k)? With the end of the year coming up, now is a good time to review your retirement account contributions and focus on maxing them out. In 2013, the contribution limit for IRAs is the lesser of $5,500 ($6,500 if you are 50 or older) or your taxable compensation for the year. For 401(k)s, the limit is $17,500 or $23,000 if you are 50 or older.

If maxing out your 401(k) isn’t in your budget, at least try to take full advantage of any match that your employer provides. So if your employer matches your 401(k) contributions dollar for dollar up to 3% of your annual salary, contribute at least 3% — it’s free money!

Lastly, if you have an IRA, keep in mind that you have until the tax deadline in 2014 (April 15) to make a 2013 IRA contribution.

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