As the contribution period for 2020 is dwindling down, it’s important to think about ways you can allocate more funds to your Roth IRA account now so you can fund your dream lifestyle during retirement. Take a look at your income and expenses. Is there a way that you can boost your incoming cash or decrease the amount of money that flows out of your pocket? If so, you are in a position to transfer extra funds to a Roth IRA.
If you have a lump sum of cash coming your way, consider setting a portion of the funds aside in a Roth IRA. By planning ahead and reviewing your money now, you can identify ways to add more money to your 2020 Roth IRA. Once your window of opportunity closes, you won’t be able to turn back the hands of time.
Automate your Roth IRA goals
There’s no need to keep tabs on your brokerage account every day to achieve your goals. You can automate your success by setting up weekly direct deposit amounts.
This is the time to consider contributing 10%, 20%, or 30% of your earnings to your Roth IRA if you’ve already met your emergency fund goals and are financially secure.
But if you really want to expedite your progress, contribute as much as you can — aim for 50% of your pay if that works for your financial situation. Remember, you’ll only have to double up on contribution amounts for a short period of time. You can return to lower contribution amounts after the tax deadline passes.