We can all agree that inflation stinks, right?
But heres one handy side effect, and its good news if youre trying to save money for retirement.
But this is big news for those of us who do.
What are these different plans? In a nutshell,401(k)plans are offered as benefits to employees in the private sector, while403(b)and457plans are offered in the public sector.5 Companies That Send People Money When They’re Asked NicelyWhen you log into your bank account, how do your savings look? Probably not as good as you’d like.It always seems like an uphill battle to build (and keep) a decent amount in savings. But what if your car breaks down, or you have a sudden medical bill?Ask one of these companies to help…
Also, if youre not maxing out your plan, you might want to start thinking about it.
What Are the New Limits for Retirement Accounts?
Thats a noticeable jump up from $20,500 this year.
In fact, its up by a record 9.8%.
The IRS has never gone that big before.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Those 50 and older can save another $1,000 per year on top of their contribution limit.
you’re free to make these catch-up contributions up until the filing deadline for that years taxes.
So start socking that money away, if you’re free to.
Lets get real, though.
Most of us arent able to stash away that much money for retirement.
Itd be nice, but we just cant afford it.
How many Americans are maxing out their 401(k) contributions?
For people with Vanguard accounts, its about 14%,according to a 2022 report about its investors.
Most people dont make enough money to save the maximum.
What Should You Do About Your Retirement Accounts?
Its part of yourcompensation package.
If youre not getting the full employer match, youre basically passing up free money.
Experts also strongly recommend that you notdip into your retirement savings before you retire.
Heres asimple 401(k) guidefor more information.
Later in life, youll be glad you did.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
