Taxes down? Savings up!
Recent tax cuts may mean more money in your paycheck that you can use to save for retirement.
More take-home pay?
You may have noticed you’re taking home a little more in your paycheck. In 2017 Congress passed the Tax Cuts and Jobs Act (TCJA), which means your employer may be withholding less money for federal taxes. Maybe you’ve earmarked that money for a shopping spree or dinners out, but consider saving it for retirement, instead.
Boost your savings
Getting a tax cut is like finding money. You didn’t have it before, so why not keep your spending the same and direct that extra money to your retirement plan? You may not even miss it.
Tax cut money may buy a few more specialty coffees or a new TV now, but think about what it could do for you in the future. Even a small increase in your savings can make a big impact over time. Just $20 a week could add up to more than $87,000 over 30 years!
Check your withholding
Because tax brackets and withholding amounts have changed, the Internal Revenue Service (IRS) encourages everyone to check if the new tax withholding is accurate. Use the calculator on their website and update your W-4, if necessary.
Take advantage of this easy way to save more for retirement. Increase your contributions today!