Local financial expert talks 401(k) strategies

ALBUQUERQUE, N.M. — We’re getting down to the end of the year so it’s a good time to think about your 401(k) and what strategies to take.

A 401(k) is a key tool for tax-advantaged retirement savings. You can contribute up to $22,500 or $7,500 if you’re over 50 years old.

Contributing the maximum amount means maximum savings and tax benefits.

Even if you don’t contribute the full amount, you should contribute enough to get a good match from your employer, if they offer it.

In your Roth IRA, you’ll want to spread risk across your portfolio. You’ll also want to pay taxes now for tax-free future withdrawals, which is important to consider if you expect higher taxes in retirement.

David Hicks, of Oakmont Advisory Group, explains it all in the video above.