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Who doesn't love IRAs? If one can love an acronym devised by those who write the tax code. IRAs (Individual Retirement Accounts for those who are not acronym-writers) are open to any American over 18 years old. They allow you to save a good chunk of change every year— and invest it for the future by putting it to work in optimized, personalized portfolios of low-fee ETFs (naturally).
As you may know, the government uses IRAs to encourage us to save for retirement. How? All the money you put into an IRA is what people call tax advantaged. The advantages are different depending on whether you have a traditional or Roth IRA account — don't worry, we help explain the differences here. Great, right?
There's one caveat. You'll have to keep track of your contribution limit and how close you are to meeting it. If you don't contribute enough, you're not taking advantage of the government's generosity (and the magic of compounding); but contribute more than is allowed and you're liable to incur a fine. And even knowing exactly how much you can contribute can be a little confusing. (If you're interested in the nitty-gritty, check out the IRS guide to contribution limits here.) Bone chilling, right?
That's where we come in. Wealthsimple has designed a tool that keeps track of your yearly contributions — and calculates how much you've got left before you reach your yearly limit. And, like all really great tools, you don't have to do anything to take advantage of it. All you have to do is log into your account and click on your IRA account page. You'll see the tracker on the left side. So whenever you come to your account, you'll always know exactly how much contribution room you have left. We'll even tell you how much room you'll have left after your scheduled auto-deposits for the year. (If you have auto-deposits. Which you should!)
And there's one more benefit. When you click on the “Funding” button, you'll be able to add funds to any eligible years — not just the current calendar year. And if it's before April 17th, you'll have the option of contributing to either the year previous or the current year — and you'll have specific trackers for each. We think it's pretty cool. We hope you will, too.
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Wealthsimple uses technology and smart, friendly humans to help you grow and manage your money. Invest and save in a better, simpler way