Taking Advantage of 401(k) Catch-up Contributions

Did you know that you can contribute more money to your 401(k) plan once you reach the age of 50? These catch-up contributions also come with tax savings!

US News posted an article this week that will give you all the details, but to hit the highlights:

For 2021, you can make catch-up contributions to your 401(k) for up to $6500. You can also defer paying income tax on as much as $19, 500. That gives you as much as $26,000 that gets a temporary pass on taxation.

If you’re currently contributing to your 401(k) using a percentage of your income, be sure you adjust the percentage to meet the new minimum once you turn 50.

Want to know more about the tax benefits of this or how to make these catch-up payments, check out the article on USNews.com

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