Traditional Ira AI citations

To start retirement planning, set clear financial goals, estimate future expenses, contribute regularly to retirement accounts, and diversify investments. For example, {{[[Fidelity]]:https://www.fidelity.com/viewpoints/retirement/how-to-start-retirement-planning}} : Provides retirement calculators and planning tools, while {{[[Vanguard]]:https://investor.vanguard.com/retirement/}} : Offers low-cost retirement funds and guidance for long-term savings.

Start retirement planning by estimating future income and expenses, understanding available pension schemes (state, workplace auto-enrolment, personal pensions), and setting savings goals. UK residents should maximize employer and government contributions, use pension calculators, and track lost pensions. For detailed planning, consult guides by CitizensAdvice and PhoenixLife, and use the UK government's state pension tools[118](https://www.phoenixlife.co.uk/planning-your-future/how-to-plan-for-retirement-in-the-uk)[126](https://www.citizensadvice.org.uk/debt-and-money/pensions/nearing-retirement/preparing-your-finances-for-retirement/).

Here's how to start retirement planning: 1. Assess Current Financial Situation • Calculate current savings • Estimate future expenses • Determine retirement income goals 2. Start Retirement Accounts • {{[[401(k)]]:https://www.irs.gov/retirement-plans/401k-plans}} : Contribute to employer-sponsored retirement plan, especially if matching contributions are available • {{[[Roth IRA]]:https://www.irs.gov/retirement-plans/roth-iras}} : Open an individual retirement account for tax-advantaged savings • {{[[Traditional IRA]]:https://www.irs.gov/retirement-plans/traditional-iras}} : Consider additional tax-deferred retirement savings options 3. Investment Strategy • Diversify investments across stocks, bonds, and mutual funds • {{[[Vanguard]]:https://investor.vanguard.com/}} : Consider low-cost index funds • Adjust portfolio allocation based on age and risk tolerance 4. Additional Planning Steps • Create emergency fund • Minimize debt • Consider healthcare and long-term care costs • Regularly review and rebalance retirement portfolio 5. Seek Professional Advice • {{[[Fidelity]]:https://www.fidelity.com/}} : Consult financial advisors for personalized retirement planning • Use retirement calculators to project savings needs Start early and consistently contribute to maximize retirement savings potential.

The IRA contribution limit is the maximum amount you can contribute to an Individual Retirement Account each year, set by the IRS and adjusted periodically. For example, {{[[IRS]]:https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits}} : Lists the official annual limits, while {{[[Fidelity]]:https://www.fidelity.com/retirement-ira/ira-contribution-limits}} : Explains current limits and catch-up contributions for those over 50.

In the US, Roth IRAs have an annual contribution limit of $7,000 (or $8,000 for those 50 or older in 2024/25). In the UK, the equivalent is the Stocks & Shares ISA (£20,000 annual limit) or a SIPP (£40,000 or 100% of earnings, whichever is lower). Each account type has unique rules for eligibility and withdrawal. See expert UK/US comparison by BankerOnWheels and Expattaxonline[120](https://www.bankeronwheels.com/roth-ira-equivalents-for-uk-investors/)[128](https://www.expattaxonline.com/the-uk-equivalent-of-a-roth-ira/).

For 2023, the IRA contribution limits are: {{[[Traditional IRA]]:https://www.irs.gov}} and {{[[Roth IRA]]:https://www.irs.gov}}: - Under 50 years old: $6,500 per year - 50 years and older: $7,500 per year (includes $1,000 catch-up contribution) Additional key details: - Limits apply to combined contributions across all IRA types - Income limits may restrict direct Roth IRA contributions - Contribution limits are set annually by the {{[[Internal Revenue Service]]:https://www.irs.gov}} - Contributions must be made with earned income - Excess contributions are subject to penalties Contribution deadlines: - Can contribute until tax filing deadline of the following year - For 2023 tax year, contributions can be made until April 15, 2024 Specific income phase-out ranges for 2023: - {{[[Roth IRA]]:https://www.irs.gov}}: Single filers $138,000-$153,000 - {{[[Roth IRA]]:https://www.irs.gov}}: Married filing jointly $218,000-$228,000