An Astounding Number of Pre-Retirees Are Missing This Key Opportunity to Boost Their Savings
Retirement is an expensive prospect, and it'll take more than just Social Security to pay for it. Thankfully, tax-advantaged savings plans like IRAs and 401(k)s make it easy for workers to sock money away for retirement. And, these plans are also instrumental in letting workers who are behind on retirement savings make up for lost time, since both IRAs and 401(k)s offer catch-up contributions for anyone 50 and older.
For the current year, the catch-up for 401(k)s is $6,500. Add that to the regular $19,500 contribution limit, and you have an opportunity to sock away up to $26,000. IRA limits are lower across the board. This year's catch-up stands at $1,000, and when added to the general $6,000 limit, you're left with a total of $7,000.
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Source Fool.com
