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New tax plan and your retirement savings

Posted at 8:22 AM, Nov 09, 2017
and last updated 2017-11-09 08:22:56-05

LEE COUNTY, Fla.-- You may be wondering if the new Washington tax plan may affect your 401k.

Southwest Florida financial professional James Gallagher, owner of Waterstone Financial, has some tips you need to know about your retirement savings.

The latest revision in congress leaves the retirement savings intact without any changes. However, it is still important you plan for your retirement.

Here are some benefits: you can get a tax deduction of up to $18,500. There is also often an employer match, and you can even roll it into an IRA if you switch jobs.

Gallagher suggests saving 10 times more than you make in a year by the time you retire.

If you save $100 a week when you are 25, you may have $1 million by the time you retire, 40 years later.