By Changes in the federal tax laws in recent years allow you to save more for retirement on a tax-deferred basis.

Employer-sponsored plans

If you work for an employer who offers a “pre-tax” type retirement plan, such as a 401(k), 403(b) or SIMPLE IRA, you should contribute as much as you can, especially if your employer matches a portion of your contribution. If the plan permits, you may also make “catch-up” contributions if you are 50 or older. Note that the actual maximum you can contribute depends on your salary, your length of service and the specific rules of your individual company's plan.

Individual Retirement Accounts

IRAs may be of interest to individuals not covered by an employer's plan. Contribution limits to traditional IRAs are shown below. In addition, the tax law offers “catch up” provisions for those 50 or over.

Business owners and the self-employed

Self-employed individuals and business owners can save even more for retirement. Business owners can set up 401(k) plans for their businesses, with or without profit sharing. Additionally, owner-only businesses without employees can also set up an Owners 401(k) Plan which enables you to contribute even more.

Save More for Retirement

Qualified retirement plans enable you to shelter more of your earnings while saving more for retirement on a tax-deferred basis. Because no other type of investment or savings plan offers these twin benefits, most financial professionals suggest you put the maximum allowed into your tax-deferred retirement plan before you fund any other type of savings or investment vehicle. For individuals employed by companies with qualified plans, contact your benefits manager for information about your own situation. For those without such plans or those who are self-employed or business owners, your financial professional can help you.

Consolidate Your Retirement Accounts More Easily

For anyone with multiple retirement accounts from multiple jobs, you can roll over the money from employer-sponsored retirement plans to other types of employer-sponsored plans or IRAs. This makes it easier for you to consolidate all your retirement dollars. If you have multiple accounts, are retiring or planning to leave your job, talk to your financial professional about a rollover IRA.

AXA Advisors, LLC does

not provide legal or tax advice. Please consult your tax or

legal advisor regarding your individual situation.

Jason Anderson is an Auburn native and financial consultant with AXA Advisors. He may be reached at 425-6340 or jason.anderson@axa-advisors.com