Build Your Nest Egg Faster
Did you know that turning 50 means you can save more for retirement? If you’re 50 or older, you can make add an extra $6,000 a year to your 401(k) – and another $1,000 a year to your individual retirement account (IRA). So-called catch-up contributions help you save more money for retirement. Here’s how:
If you’re 50 or older, current IRS rules let you contribute a total of up to $23,500, including catch-up contributions, to 401(k) accounts and other qualified retirement plans in 2015. And you can contribute up to $6,500 to a traditional IRA.
Work with your financial advisor to see if you qualify for catch-up contributions – and create a retirement plan designed to close the gap between what you have saved and what you might really need in retirement.