Maximize Your Contributions Strategically

Individuals with earned income, especially those who meet specific income thresholds, have valuable opportunities to maximize their retirement contributions. They can fully fund a Roth IRA, given their income surpasses the necessary limits, while also contributing significantly to a solo 401k—up to $19,500 as an employee and an additional 20% of net earnings as an employer. Understanding the fungibility of money is essential; although it may seem counterintuitive to transfer funds from taxable accounts to retirement plans, doing so can provide significant financial benefits.