Time to Catch Up?
- If you are 50 or over consider making additional contributions to your IRA or qualified plan.
- Calculate how many more years you have until retirement - the extra contributions can make a significant impact on your savings.
Turning 50 is a huge milestone, especially when it comes to saving for retirement
In a recent BlackRock study, more than 50% of investors surveyed expressed concern that their retirement savings may not be enough to support them through their lifetime. If you fall into this category, here's an easy way to get that much closer to a comfortable retirement.
Did you know that when you turn 50 you have the opportunity to make additional contributions into your IRA or qualified plan? In an era where retiring comfortably on Social Security and a company pension is practically impossible, the importance of personal retirement savings cannot be overstated. As retirement nears and you move into your peak earnings years, take every opportunity to build your retirement assets and max out all of your contribution options. In this new world of retirement with people living longer, every bit of savings will make a difference in the long run.
A catch-up contribution is a special IRS provision that allows individuals age 50 and older to defer more money to retirement plans – giving a boost to retirement savings while deferring taxes.
Work with your financial professional to establish a retirement plan suited to your needs.
|2013 Annual |
|2013 Annual |
|Traditional IRA/Roth IRA||$5,500||+||$1,000|
Why Catch-up Contributions Matter
If you max out your 401(k) and experience a 7% annual return, you save just over $800,000 between ages 50 and 70. If you take full advantage of catch-up contributions, you save over $1 million in that same time period:
This material is provided for educational purposes only and does not constitute investment advice. The information contained herein is based on current tax laws, which may change in the future. BlackRock cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided herein or from any other source mentioned. The information provided in these materials does not constitute any legal, tax or accounting advice. Please consult with a qualified professional for this type of advice.
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Prepared by BlackRock Investments, LLC, member FINRA.