Frequently Asked Questions

One way to minimize your income tax liability is to maximize your pre-tax retirement contributions.

Key 2026 IRS contribution and catch-up limits: 

IRAs (Traditional & Roth)

• Base Contribution: $7,500
• Age 50+ Catch-up: +$1,100 Total $8,600

401(k), 403(b), & 457(b) Plans

• Employee Elective Deferrals: $24,500
• Standard Age 50–59 Catch-up: +$8,000
• Ages 60–63 "Super" Catch-up: +$11,250
• Total Employee + Employer Contributions: $72,000

SIMPLE IRAs & SIMPLE 401(k)s

• Employee Elective Deferral: $17,000 
• SECURE 2.0 Higher Deferral Limit (for specific plans): $18,100

SEP IRAs

• Contributions are made entirely by the employer (or by you, if you are self-employed)  
• Contribution limit is the lesser of 25% of the employee’s compensation or $72,000 

Other Plan Limits

• Defined Benefit Plan Maximum (Annual Benefit): $290,000
• Annual Compensation Limit: $360,000
• Highly Compensated Employee Income Limit: $360,000

The advantages include the following:

• The opportunity to acquire the investment with a relativity high degree of leverage; i.e. use of debt financing
• Certain tax benefits, to include tax depreciation

A disadvantage of real estate

• It's lack of easy marketability, meaning it can be difficult to quickly convert a real estate investment into cash, as compared to stocks and bonds

Successful investment in real estate involves consideration of many factors, including the following:

• Location of the property and it's expected appreciation over the anticipated holding period
• Degree and type of leverage
• Property and other relevant taxes
• Expected occupancy rate and cash flow

In 1983, Congress passed a law to gradually increase the full retirement age because people were living longer and generally heathier in older age. For example, full retirement age is 67 for people born in 1960 and later. If you decide to begin receiving Social Security benefits at age 62 your benefit will be reduced by 30%. The Social Security benefit increases approximately 8% for every year between 67 and 70 that you wait to claim. 

To estimate your benefit amount go to: https://www.ssa.gov/oact/quickcalc/