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Finding the right retirement plan for you | 2 Wants to Know

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It’s never too early to start planning ahead for retirement. A financial planner said you should take advantage of any opportunity to get ahead.

GREENSBORO, N.C. — People spend their lives working to earn money. They try to set themselves up for financial success when it comes to retirement.

You can help yourself get ahead by contributing to the right accounts. We spoke with financial planner Scott Braddock to explain the different plans and which one might be right for you.


Braddock said people sometimes leave free money unclaimed. He said most employers offer a 401(k) match.

In 2022, the most an employee can contribute to their 401(k) plans. Employers can match that contribution, as long as it doesn’t go over the separate $61,000 employer-employee limit, according to Braddock.

People 50 and older might be eligible for additional contributions to their account.


Braddock said the Secure Act allows anyone to contribute to an IRA account as they long as they have an earned income.

IRA accounts do not lower someone’s earned income for the year. Braddock said the funds could be tax deductible depending on what you make.

You can invest in multiple accounts. Braddock said 401(k) participants who make less than $78,000 are eligible for tax deductible IRA contributions.

2022’s IRA contribution limit is $6,000.

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Roth IRA

Anyone making $144,000 or fewer can contribute to a Roth IRA account. That limit goes up to $214,000 for couples.

Braddock said people who make too much to contribute directly can still put money into a Roth IRA. He called it a “back-door Roth.” He said people can make a non-deductible contribution to an IRA and then do a Roth conversion later.

Braddock said people pay taxes going into the Roth, but they don’t have to pay taxes on the growth, future withdrawals or when you pass money to beneficiary.

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