{"id":38,"date":"2013-10-23T14:04:15","date_gmt":"2013-10-23T14:04:15","guid":{"rendered":"http:\/\/www.roecpa.com\/blog\/?p=38"},"modified":"2013-11-16T17:40:50","modified_gmt":"2013-11-16T17:40:50","slug":"why-you-should-max-out-your-2013-401k-contribution","status":"publish","type":"post","link":"https:\/\/www.roecpa.com\/blog\/why-you-should-max-out-your-2013-401k-contribution\/","title":{"rendered":"Why you should max out your 2013 401(k) contribution"},"content":{"rendered":"<p dir=\"LTR\" align=\"LEFT\">Contributing the maximum you\u2019re allowed to an employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, is likely a smart move:<\/p>\n<ul>\n<li>Contributions are typically pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the new 3.8% Medicare tax on net investment income.<\/li>\n<li>\u00a0Plan assets can grow tax-deferred \u2014 meaning you pay no income tax until you take distributions.<\/li>\n<li>\u00a0Your employer may match some or all of your contributions pretax.<\/li>\n<\/ul>\n<p>For 2013, you can contribute up to $17,500 \u2014 plus an additional $5,500 if you\u2019ll be age 50 or older by Dec. 31.<\/p>\n<p dir=\"LTR\" align=\"LEFT\">If you participate in a 401(k), 403(b) or 457 plan, it may allow you to designate some or all of your contributions as Roth contributions. While Roth contributions don\u2019t reduce your current MAGI, qualified distributions will be tax-free. Roth contributions may be especially beneficial for higher-income earners, who are ineligible to contribute to a Roth IRA.<\/p>\n<p>Please feel free to call me at 678-969-0523.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contributing the maximum you\u2019re allowed to an employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, is likely a smart move: Contributions are typically pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the new 3.8% Medicare tax on net investment income. \u00a0Plan [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4,3],"tags":[],"class_list":{"0":"post-38","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-accounting","7":"category-tax","8":"entry"},"_links":{"self":[{"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/posts\/38","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/comments?post=38"}],"version-history":[{"count":3,"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/posts\/38\/revisions"}],"predecessor-version":[{"id":50,"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/posts\/38\/revisions\/50"}],"wp:attachment":[{"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/media?parent=38"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/categories?post=38"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roecpa.com\/blog\/wp-json\/wp\/v2\/tags?post=38"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}