There are some advantages to getting older, especially if you are behind in your retirement savings. In the year you turn age 50 (and every year thereafter until retirement), individuals are allowed to make “catch-up” contributions to help boost retirement savings. In qualified retirement plans like 401(k)s, the catch-up amount is $6,000; for IRA accounts, the amount is $1,000. But how much does that boost in savings help?...
Playing Catch-Up
At a certain age, you are allowed to boost your yearly retirement account contributions. For example, you can direct an extra $1,000 per year into a Roth or traditional IRA starting in the year you turn 50. Your initial reaction to that may be: “So what? What will an extra $1,000 a year in retirement savings really do for me?”...
Key Ages and Dates for Retirement Planning
Sharing the following from Next Avenue, courtesy of Emily Brandon’s new book, Pensionless. It’s a great summary of key ages and dates important to the retirement planning timeline. These ages and dates are a bit like mile markers on your retirement road-map. Knowing the ramifications associated with each (i.e. the ability to contribute more, the age at which you can start taking benefits without penalty, the age and time by which you need to make distributions from your retirement accounts) are critical to one’s decisions made about and in retirement....