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These do not include IRAs.
When you turn 64, your catch-up limit reverts back to the 50-year-old-and-up limit,currently $7,500.
Who Should Take Advantage of Super Catch-Ups?
This is a great opportunity to lower your current tax burden and gild your golden years.
Itll help dispel any worries you may be having about affording retirement because itsquite a big contribution.
But if you plan correctly, that someday is when you are in a lower tax bracket.
Who Should Consider Passing on Super Catch-Ups?
While saving for retirement is vital, not everyone should supersize their catch-up contributions.
High-interest debt can kill those gains, however.
Finding a balance between paying off debt and investing in your retirement is a great foundation to financial security.
This can cause you to fall behind on your financial obligations and further into debt.
This rule mainly benefits higher earners who can afford to stash away more money, Carlson said.
If youre making good money and have the ability to save, then go for it.
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