What’s So Great About Being 60?!? Everything!
SUITE(k) - Retirement Plan Division of S.E.E.D. Planning Group
Helping employers with retirement plan administration, fiduciary oversight, and employee education for a flat fee.
It’s the beginning of a whole new decade with endless memory-making opportunities. However, as we age through decade after decade, the more decades add up, the reality of our longevity begins to sink in. The good news is that people are living longer than at any other point in our history, enjoying their ‘golden years’ in relatively good health. This is a gift and a curse.?
A gift, because we are given the opportunity to enjoy some of the things we have always dreamed about doing while we are still young enough and healthy enough to do them. A curse, because people find they may not have saved enough for retirement to last through their golden years. They then must decide to either live on less or return to work to bridge any shortfalls.?
Good news! In 2022, the SECURE 2.0 ACT was passed to allow people who have attained age 60, 61, 62, or 63 to make an ‘extra’ catch-up contribution to their 401(k), beginning in 2025. What is the magic to these ages? This age group is standing on the precipice of actual retirement and are being given the opportunity to pad their savings with a little ‘extra’. How much??
Beginning January 1, 2025, the maximum Contribution Limits an employee may contribute to their 401(k), 403(b) & 457 Plan are as follows:?
If it is possible to do it, this is a terrific opportunity to add a little extra to your annual contributions. Regardless of your current salary deferral rate, do yourself a favor this Holiday Season and plan to take care of yourself first in the New Year. Be proactive. Increase your contributions by 1%, 2%, 3% ... Even small increases can have a significant impact over time.?
If you have any questions or need help determining how much you should be saving for retirement, please reach out to: www.401ktime.com / Contact Us. We can help!?
?? Wishing you a joyful and happy Holiday! Kerstin Driscoll-Witt ?