Copper Leaf Wealth Advisor Breanna Sykes, CFP® has published a new article on LinkedIn highlighting some of the personal financial perks of turning 50!
Did you know that in the year you turn 50 you can contribute additional money to retirement savings accounts such as 401k? For 2023 the annual maximum contribution to a 401(k) plan is $22,500 unless you are over the age of 50. If you are 50+ you can make an additional $7,500 contribution each year. This amount will increase in 2025 and will be indexed for inflation once effective.
This benefit is called the “catch-up contribution” and it is just that – an opportunity to contribute more into your retirement account to gain momentum before retirement. In 2023 you can make your regular contributions and these catch-up contributions on a pre-tax basis, meaning you are deferring taxes until later and therefore reducing your current taxable income.
For more details and to read the entire article click here.
At Copper Leaf Financial we understand the importance of tax strategizing and how it will impact your overall financial plan. We use our in-depth expertise to help minimize your tax liability and create a long-term plan. Call us today at (802) 878-2731 to schedule a complimentary strategy session.
Recipients should not act on the information presented without seeking prior professional advice. Check with your advisor about your specific situation.