For after-tax contributions to a workplace retirement plan, the plan administrator will keep track of pre-tax and after-tax amounts. If after-tax contributions are made to your Traditional IRA, then it is your responsibility to track the amounts.
While investors kept tariffs and trade disputes in mind in August, a new earnings season provided Wall Street with a lift. Blue chips especially benefited: the Dow Jones Industrial Average rose 4.71% for the month. Broadly speaking, strong corporate profits and domestic economic data gladdened the bulls, even as question marks about global commerce flashed.(1)
Domestic Economic Health
Was the federal government about to enlarge tariffs on Chinese imports or relax them? The month ended with conflicting signals. In late July, Bloomberg reported that the Trump administration was considering hiking the 10% import taxes, which it planned to impose...
At the end of 2018, economists and journalists may look back on the second quarter and see the moment when a global trade war began. Whether one is truly underway or not, the fact is that Q2 was a good quarter for equities. The S&P 500 gained 2.93% in three months, and while the blue chips had their struggles, tech shares ascended once again.
In May, investors were left to interpret mixed geopolitical and financial signals. The historic U.S.-North Korea summit was on, then off, then possibly on again. An apparent truce emerged in the U.S.-China tariffs battle, but it did not last. Oil rallied, but then prices fell. Federal Reserve policy meeting minutes indicated central bank officials would accept above-target inflation for a while. Other economic signals were clear: new and existing home sales were down, consumer confidence was back up, and consumer spending was strong. In the end, the markets took all this in stride – the S&P 500 rose 2.16% for the month.(1)
April saw the S&P 500 advance 0.27% as a new earnings season unfolded – one in which investors grew uneasy about rising Treasury yields, protectionism, and privacy concerns involving tech giants. While the financial media largely focused on those anxieties, good news also appeared. The latest consumer spending and consumer confidence data was solid. Home buying picked up as listings increased slightly. Oil rallied, and so did the dollar.
Stocks rallied in January, corrected in February, and slumped in March as volatility and economic policy changes took some of the enthusiasm out of the market. The placid market climate of 2017 vanished, giving way to trading sessions marked by significant ups and downs.
Slight increases have been made due to mild inflation.
You will able to put a little more into your workplace retirement account in 2018. The federal government has boosted the annual contribution limit on some of the popular qualified retirement plans thanks to inflation and made other adjustments worth noting.
Contribution limits for 401(k)s are rising by $500. This is the first increase seen in three years. In 2018, you can direct up to $18,500 into one of these accounts; $24,500, if you are age 50 or older. (1)
This $500 increase also applies for three other types of retirement plans – the 403(b) plans in place at schools and non-pro...
Do you want a simple retirement plan you can implement easily as an independent contractor or small business owner? A SIMPLE IRA plan gives you a tax break, while giving you and your employees a way to build retirement savings.