|
|
|
|
Research and Compare Hundreds of
CD-Type, Fixed and |
Questions?
Give us a Call |
|
|
| ||||||||||||
|
Are You Coming Up Short?It's a nightmare scenario many have considered: You're going to retire in 10 or 15 years, knowing full well that you haven't saved enough. Is there anything you can do?
In 2005, contribution limits for 401(k) and 403(b) plans rose to $14,000. And those aged 50 and older can save an additional $4,000 in catch-up contributions, for a total of $18,000. In 2006, contribution limits will rise again, capping at $15,000 a year, with an additional $5,000 for catch-up contributions. Contribution limits for IRAs have also increased. In 2005, they reached $4,000, with an additional catch-up limit of $500 for those aged 50 and older. In 2006, catch-up contribution limits will increase to $1,000. In 2008, regular IRA contribution limits will be $5,000. Distributions from traditional IRAs and employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10 percent federal income tax penalty. When it comes to saving for retirement, every little bit counts. And catch-up contributions may have a significant impact on your overall retirement lifestyle. |
Send email to
webmaster@annuityadvantage.com with
questions or comments about this web site.
|
|
Luckily,
the answer is "yes." Thanks to catch-up provisions now available with
most retirement plans, you may be able to make your savings work harder as you
approach retirement. Because these plans offer both tax-advantaged contributions
and tax-deferred accumulation, they can help boost growth potential and may
enable you to reach your financial goals on time.
