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A year-end cash guidelines for folks 50 and up | Native Enterprise

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By Staff , in Retirement Accounts , at December 18, 2021



Age brings distinctive alternatives and obligations, together with some necessary year-end duties that may enable you take advantage of your cash. For folks 50 and older, listed below are some to think about:

Play catch-up, in case you can

When you’re nonetheless employed, use a retirement calculator to see in case you ought to enhance your financial savings fee.

Catch-up contributions may let you save extra in tax-advantaged accounts. Somebody who’s 50 or older can contribute as much as $26,000 to a office 401(okay) in 2021, and as much as $7,000 to an IRA, says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting.

You might have till Dec. 31 to contribute to office plans for 2021 and till April 15 to make your 2021 IRA contributions. The flexibility to contribute to a Roth in 2021 phases out starting at modified adjusted gross earnings of $125,000 for singles and $198,000 for married {couples} submitting collectively.

Barely totally different guidelines apply for well being financial savings accounts, that are paired with qualifying high-deductible medical health insurance plans, Luscombe says. Contribution limits for 2021 are $3,600 for folks with particular person protection and $7,200 for folks with household protection. Individuals 55 and older could make an extra catch-up contribution of $1,000. As with IRAs, you’ve got till the tax submitting deadline, April 15, to contribute for the yr.



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