Introduction

• Contributions limits for retirement accounts such as 401K, IRA, and Roth IRA have been set at $22,500 for 2023, with catch-up contributions for those over 50 at $6,500.
• For high-income earners, there are additional restrictions on Roth IRA contributions.
• An alternative is an IUL-Index Universal Life policy, which has no annual contribution limits.

401K, IRA, and Roth IRA Limits

• 401K contributions are limited to $22,500 for 2023, with catch-up contributions at $6,500 for those over 50.
• IRA contributions are limited to $6,500 for 2023, with catch-up contributions at $1,000 for those over 50.
• Roth IRA contributions are limited to $6,500 for 2023, with catch-up contributions at $1,000 for those over 50.
• For those earning over $144,000 annually as a single filer or $214,000 as a married joint filer, Roth IRA contributions are further restricted.

IUL-Index Universal Life Policy

• An IUL-Index Universal Life policy has no annual contribution limits.
• This option allows high-income earners to contribute more than the annual limits set on traditional retirement accounts.
• In addition to investment opportunities, an IUL policy also includes life insurance and living benefits at no additional cost.

Conclusion

• Retirement account contribution limits can restrict the ability of high-income earners to save for retirement.
• An IUL-Index Universal Life policy offers an alternative with no annual contribution limits and added benefits such as accessing your funds Tax-free, life insurance, and living benefits.
• It’s important to carefully consider your options and choose a plan that aligns with your financial priorities and budget.
• It’s also a good idea to consult with a financial advisor or professional to help you make an informed decision. Contact us today, at Wealth Financial Services & Products at 754-202-2300 or visit our Get a Quote, to set up a consultation.