Don't Ignore These Seven Retirement Saving Ideas

Everyone knows it's important to save for retirement. But what are the best ways to do it while minimizing the impact of taxes on your savings? These seven practical strategies can help:

1. Focus on 401(k) salary deferrals. If your employer offers a 401(k) plan, allocate as much of your salary as you can to payroll deductions. For 2017, the IRS allows you to defer as much as $18,000 of your compensation, or $24,000 if you're age 50 or over. If you've been putting in the bare minimum the past few years, it may be time to dig a little deeper. The impact of investing your contributions, which compound without current tax, may far exceed your expectations.

2. Take advantage of your employer's match. Many companies agree to match part of what you contribute to a 401(k), up to a stated percentage. For instance, your employer may match half of the first 6% of your compensation that you put into your plan. So if you earn $100,000 a year that would add $3,000 to the account each year. And while employer contributions sometimes are subject to a vesting schedule, with some money held back until you've worked for a company for several years, there's no downside to increasing your contribution to take advantage of this benefit.

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This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.

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