When people make their resolutions for the new year, money is one of the most common themes. Whether it’s paying down debt, increasing savings, deciding to start a business or planning a vacation, money often touches our goals for the new year, whether directly or indirectly.
Making sure your retirement savings is in order should be a priority for you heading into 2018. The new year provides a good opportunity to re-evaluate your accounts and prioritize your goals for the next 12 months.
Here is a checklist of things to consider as you assess your retirement savings this year
- Rebalance your portfolio
Equities were on a tear in 2017, which is a good thing for most people. However, with the stock market being so hot last year, that means your asset allocation may have gotten out of whack if you didn’t rebalance in 2017. A lot of people use the new year as an opportunity to make sure their percentage of stocks and bonds is in line with their retirement savings goals.
- Maximize your previous year’s contributions
If you didn’t max out your IRA contributions in 2017, there’s still time left to contribute. Dec. 31 is not a hard cutoff for making contributions to some tax-advantaged retirement accounts for the previous year. You can still make contributions for the 2017 tax year in 2018.
- Know the contribution limits for 2018
In 2018, the only thing that has changed for most people is an increase in the 401k contribution limit for those under age 50. That threshold has increased from $18,000 in 2017 to $18,500 this year. Everything else remains unchanged. Still, if you have a 401k, you can put an extra $500 in this year.