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SAVE FOR RETIREMENT

Workplace retirement savings plans:
one benefit that may be of real benefit.

It's pretty common for people to think they can't afford to contribute to a 401(k) or other workplace retirement plan. After all, when you're barely making ends meet, how can you make do on less? But what many don't realize is contributions to retirement plans are often pre-tax dollars. Some even include a company match. Put them together and you can start saving for retirement for less than you think.

Depending on your tax bracket and company match, up to about 40% of the money going into your account could be money you wouldn't otherwise have access to*.

Prime Earners

If you're not already maxing out your 401(k), try to step it up. The later you start, the more money you need to set aside to meet your goals.

Empty-nesters

You can have more than one tax-advantaged account, so even if you've got a 401(k), consider opening an IRA for even more savings.

Retirees

At 70 ½, you're required to withdraw a certain amount from some retirement accounts every year to avoid penalties. Consider consolidating IRAs and 401(k)s to help make Minimum Distribution Requirements easier to manage.


*AARP Financial Inc. does not provide tax advice. Please consult a tax advisor for information pertaining to your particular situation.

 

"The question isn't
at what age I want
to retire, it's at
what income."

– H. Stanley Judd


 

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