meIf you’re one of those worker bees who likes to anticipate everything in life, you’ve probably already outgrown your 401(k). Maybe you haven’t looked in a while but you’ve been consistent with your deposits into your retirement account and recently discovered you’ve maxed out. Either that or 403(b) accounts can only take in so much money, but don’t get nervous. There are ways you can keep adding to this retirement account no matter how maxed your 401(k) is.
All retirees aim to live their lives in the best possible way during their post-retirement years. The main plan is to have the best possible living during a period of time when you will most likely want to travel or spend more time with your loved ones. Before making any decisions about how to maintain your income, you first need to make sure you’re on track to maxing out your 401(k) before you retire. Once that’s over, you can start planning your many options.
Best way to save money after maxing out your 401(k) and 403(b)
After you’ve made sure you’ll max out in either account, you need to remember that 401(k) or other similar retirement accounts can allow you to contribute up to $19,500 annually. For those 50 or older, the retirement benefit contribution is $6,500. That works out to $26,000 annually. For retirees, this amount of money is not bad for covering basic expenses and living a decent life during retirement.
In case you didn’t know, you can always go the Individual Retirement Account (IRA) route. Maxing out your 401(k) and 403(b) shouldn’t stop you from achieving your retirement goals, so this is a great option to keep saving. If you meet certain IRS guidelines and you’re under 50, you can continue to save up to $6,000 before tax in an IRA. Those age 50 or older can add an extra $1,000, which means they’ll be able to save $7,000 before taxes annually. Other options are simplified employee retirement (SEP), saving with your spouse, boosting your emergency fund, saving in a personal annuity, saving in a 529 plan, and saving on health care costs. The options are there, you just have to look for them.
.
[ad_2]
