Categories: Curiosities

Critical Money Moves You Should Make in Your 50s

5. Maximize retirement plan contributions

If your employer matches a portion of your workplace retirement plan contributions, take full advantage of the free money — no matter your age. If your employer matches up to 3 percent, for example, save at least 3 percent to capture that gift.

Additionally, the Internal Revenue Service has special rules designed to encourage savers who are 50 or older to ramp up their savings for retirement. Here’s how to take advantage of these rules:

Max out your workplace retirement plan contribution: IRS rules let workers contribute up to $18,500 to workplace retirement plans like a 401(k) in 2018.

Max out your workplace retirement plan “catch-up” contribution: Savers age 50 and older may also contribute an additional $6,000 to such a plan this year. That’s $24,500 total.
Max out individual retirement account (IRA) contributions: The IRS rules for IRAs allow contributions of $5,500 in 2018 plus a catch-up contribution of $1,000 if you are 50 or older. That’s $6,500 total.

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