Maximize Retirement Savings With Catch-Up Contributions

January 13, 2021
Catch-Up Contributions: Saving As Much As You Can For Retirement

As you are planning for your retirement, it’s important to save early and often. If you wish to maximize your 401(k), IRA or other retirement accounts’ earning potential, you may wish to contribute to these accounts at the highest level permitted by the IRS. Provided below are 2021 contribution limits for individuals who are not yet age 50, as well as limits for those age 50 and older who are eligible to make catch-up contributions.

Please note, to be eligible for catch-up contributions, there is no other requirement than to have reached age 50 or older. And, even when contributed later in one’s career, catch-up contributions can have a large impact on retirement savings, as illustrated in the table to the left.

As illustrated, based on an annual return of 5%, there is an additional $135,945 in gain in this example Traditional IRA by the individual who made catch-up contributions beginning at age 50 versus the individual who did not.* Making catch-up contributions can make a big difference.

For additional assistance with your retirement planning needs, please contact your wealth advisor.

Sources:

Mariner Wealth Advisors

Retirement Topics-Catch-Up Contributions,” irs.gov

This article is limited to the dissemination of general information pertaining to Mariner Wealth Advisors’ investment advisory services and general economic market conditions. The views expressed are for commentary purposes only and do not take into account any individual personal, financial, or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice or a solicitation to buy or sell any security or engage in a particular investment strategy. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. Any opinions and forecasts contained herein are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information that this opinion and forecast is based upon. You should note that the materials are provided “as is” without any express or implied warranties. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

*The hypothetical information contained herein should not be construed as personalized investment, legal, tax or insurance advice and should not be considered as a solicitation to guy or sell any security or engage in any particular investment strategy.

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