The public stock market exchanges have had a remarkable year – with the Dow Jones Industrial average up 22% and the Nasdaq up an amazing 33%. Yet, interestingly enough, the growth of self-directed IRAs continues unabated. Why? Many investors would prefer to invest in what they know and understand, and in many instances believe that by making their own decisions they will have a better long term result.
Quite frankly, the best news is that Congress and the IRS have pretty much left IRAs alone, although rumors are swirling about potential curtailments on conversions to Roth IRAs. The good news is there have been no changes to the contribution limits for any of the IRA vehicles this year. The only change in this arena is largely around income limits for eligibility to contribute or tax deductions for those contributions.
For those of you interested in solo 401(k) plans, the defined contribution limit has increased to $52,000. Educational Savings Account contributions are still at $2,000. And Health Savings Account contributions have been raised to $3,300 for individuals and $6,550 for families.
So, to those of you who haven’t started self-directing, get going. And to the rest of you, congratulations and continue to build your wealth. The success our clients experience with us are inspiring, and we are grateful that we can help keep client investments sheltered from the taxes that can eat away at returns. Investing through an IRA with NuView, your dream of retirement may be closer than you think.