You may need more than one retirement account, depending on how much you plan to contribute each year. IRAs only allow you to contribute $6,000 per year or $7,000 if you’re 50 or older. HSA limits are even lower. You may contribute up to $3,600 if you have an individual health insurance plan or $7,200 if you have a family plan in 2021. These limits will rise to $3,650 and $7,300, respectively, for 2022.
A 401(k) enables you to contribute up to $19,500 or $26,000 if you’re 50 or older in 2021, so one of these accounts is a good choice for those hoping to set aside substantial sums. These limits will rise to $20,500 and $27,000 for 2022.
How do you keep yourself on track?
Ideally, you can save enough in your retirement accounts every month to make steady progress toward your goals. If you’re unsure how much you need to save monthly, you can use a retirement calculator to help you.
But it isn’t always possible to save as much as you want for retirement. You should still set aside as much as you’re able to, but you can’t just leave it at that. If you know you’re falling short, you have to alter your retirement plan.
You may have to delay retirement to give yourself more time to save. Or you might have to save even more money going forward if you have a few months where you’re not able to save as much as you’d like. The important thing is to make these decisions right away so you know how to keep yourself on track.