401(k) plans

Jamie Grill | Getty ImagesIt's not easy to prioritize financial goals, especially when choosing between two essentials in an unsteady economy: saving for retirement or building your emergency fund. While there are higher 401(k) contribution limits for 2023, you shouldn't skip rainy day savings to max out your retirement plan, experts say. Indeed, more than half of savers are prioritizing short-term financial goals in 2023, including emergency savings, according to a recent study from Fidelity Investments. And a recent…

Designer491 | Istock | Getty ImagesIf you're eager to boost your retirement savings, there's good news for 2023: higher 401(k) contribution limits. And now is the time to adjust your deferrals, financial experts say.You can funnel $22,500 into your 401(k), 403(b) and other such plans for 2023, up from the $20,500 limit in 2022. Employees 50 and older can contribute an extra $7,500, up from $6,500 in 2022.In 2021, roughly 14% of investors maxed out employee deferrals, according to 2022 estimates from Vanguard, based on…

1. Bigger contribution limits on retirement accountsIf you're eager to boost your retirement savings, there's good news for 2023: higher contribution limits for your 401(k) and individual retirement account.In 2023, the employee deferral limit is $22,500, up from $20,500, and catch-up deposits for savers age 50 and older jump to $7,500, up from $6,500. These increases also apply to 403(b) plans, most 457 plans and Thrift Savings Plans."That's a big change for a lot of people," said certified financial planner Brandon…

The end of the year is an important time for making financial decisions that can have an impact in the year ahead — and for years to come.From your work to your savings and investments to spending and giving back, here are five moves you should consider making before Dec. 31 that can help to prepare you for financial success in 2023:   1. Make sure you didn't pay too little tax on 2022 incomeCn0ra | Istock | Getty ImagesYou don't want to wind up paying interest and penalties or a big tax bill next year because you didn't…

seksan Mongkhonkhamsao | Moment | Getty Images1. Boost your 401(k) contributionsIf you haven't maxed out your workplace 401(k), there may still be time to boost your contributions for 2022, said Guarino.The move may lower your adjusted gross income while padding your retirement savings, but "time is of the essence," he said. With only one or two pay periods left for 2022, you'll need to make contribution changes immediately. 2. Take your required minimum distributionsZhanna Hapanovich | Istock | Getty ImagesUnless it's…

If you've already maxed out 401(k) plan contributions for 2022 and you're eager to save more for retirement, some plans have an under-the-radar option, experts say.For 2022, you can defer $20,500 into a 401(k), plus an extra $6,500 for investors 50 and older. But the total plan limit is $61,000 per worker, including matches, profit sharing and other deposits. And some plans let you exceed the $20,500 deferral limit with so-called after-tax contributions. "It's definitely something higher-income people may want to consider…

If you're eager to save more for retirement in 2023, there's good news from the IRS: higher limits for your annual 401(k) plan and individual retirement account contributions.The employee contribution limit for 401(k) plans is increasing to $22,500 in 2023, up from $20,500, and catch-up deposits for savers age 50 and older will jump to $7,500, up from $6,500. The new amounts also apply to 403(b), most 457 and Thrift Savings Plans.The agency has also increased contribution limits for IRAs, allowing investors to save $6,500…

Consistently saving a small percentage of your salary is a simple way to ensure you're prepared for retirement.As a rule of thumb, most financial advisors suggest you save 10% to 15% of your earnings. Here's a case study assuming you start with no savings, plan to retire at 65 and have investments that earn 6% annually.If you want to retire with $1 million, you'll need to invest about 9% of a salary of $70,000 starting in your 20s. Waiting until you're older will require a larger portion of your pay. If you wait until…

Elena Kurkutova | Istock | Getty ImagesOlder Americans may have a number of different goals with their retirement savings. But usually their main goal is the same: to make it last.Unfortunately, many younger baby boomers and members of subsequent generations who don't have access to a traditional pension could outlive the funds in their 401(k) accounts, a recent study from the Center for Retirement Research at Boston College found.The economists compared the drawdown speeds between those with traditional pensions and…

Small business owners are among the Americans most likely to fall behind on saving for retirement. Investing back into a business is more often a priority for entrepreneurs with any excess cash than investing in a long-term tax-deferred retirement plan. Covid didn't help.Amid the pandemic, scores of America's small business owners stopped or cut back on their retirement savings, according to investment professionals and retirement experts, squeezed by rising labor and raw material costs, or in the worst-case scenario,…