Age brings unique opportunities and obligations, including some important year-end tasks that can help you get the most out of your money. For those 50 and over, here are a few to consider:
Catch up if you can
If you are still employed, use a retirement calculator to see if you should increase your savings rate.
Catch-up contributions could allow you to save more in tax-efficient accounts. A person 50 or older can contribute up to $ 26,000 to a 401 (k) workplace in 2021, and up to $ 7,000 to an IRA, says Mark Luscombe, senior analyst for Wolters Kluwer Tax & Accounting .
You have until December 31 to contribute to the work plans for 2021 and until April 15 to make your 2021 IRA contributions. The ability to contribute to a Roth in 2021 gradually disappears from an adjusted adjusted gross income of 125 $ 000 for singles and $ 198,000 for married couples filing jointly.
Slightly different rules apply to health savings accounts, which are associated with qualifying, high-deductible health insurance plans, Luscombe explains. The contribution limits for 2021 are $ 3,600 for people with individual coverage and $ 7,200 for people with family coverage. People aged 55 and over can make an additional catch-up contribution of $ 1,000. As with IRAs, you have until the tax filing deadline of April 15 to contribute for the year.