If you’re in your 50s, you’re probably looking forward to retirement. Your careful saving and planning have probably helped you amass a handsome amount of wealth. But there’s still plenty of uncertainty ahead. And now is a great time to review your plan to make sure you’re still on the right track and avoid pitfalls. So let’s take a look at some do’s and don’ts for retirement planning in your 50s.
Do Take Advantage of Catch-Up Contributions
If you’re 50 or older, you have exclusive rights to contribute more to key retirement plans than those younger than you. This is because the IRS allows those aged 50 or older to make additional catch-up contributions to various retirement plans.Here’s how it works: If you’re 50 or older, you can make catch-up contributions of $8,000 to your 401(k) for a total of $32,500.
