Making extra catch-up contributions to retirement accounts can add up. Taxpayers age 50 and older can contribute an extra $1,000 annually to a traditional or Roth IRA, and those enrolled in employer 401(k), 403(b), or 457 retirement plans can make extra contributions of up to $7,500 for 2023. The tax savings and potential for increased retirement wealth make it well worth the trouble. – Making larger deductible contributions to a traditional IRA can lower tax bills.
– By contributing an extra $7,500 to a company plan for 15 years, individuals could have significantly more in their 401(k), 403(b), or 457 plan account.
– Making extra catch-up contributions to both an IRA and a company plan can result in even bigger savings for retirement.
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