Personal Finance

5 Smart IRA Moves You Can Make Now

Expense Ratio
Expense Ratio

You may be surprised to learn that the lower-priced fund would return $22,000 more than the more expensive option -- a difference of nearly 10% in the overall investment return. Over longer periods of time, the difference is even more dramatic. Take a look at your funds' expense ratios and check if there may be a less-expensive option that could meet your investment objectives.

Take care of your spouse's retirement

Generally, you cannot make an IRA contribution if it exceeds your earned income for the year. In other words, if you don't earn any income, you can't make a contribution. However, married couples may qualify for an exception.

In cases where one spouse works and the other doesn't (or doesn't earn enough to make a full contribution), the spouse with earned income can make an IRA contribution on the other's behalf, as long as they file a joint tax return. Normal IRA contribution rules apply, such as the income limits for Roth contributions, and the requirement that your spouse must be under 70-1/2 years old for a traditional IRA contribution.

So, if your spouse doesn't earn enough to contribute to an IRA on their own behalf, this can effectively double your ability to take advantage of IRA benefits. This can be a great way to boost your retirement savings, especially if you've already maxed out your own IRA contributions.

The $15,834 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $15,834 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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