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5 Ways to Dump Your Retirement Savings and Save More Money in 2022

Examine Workplace Pension Contributions

Contribute to traditional or Roth accounts – or both.

Increase automatic account contributions

Whether you are investing new money in traditional or Roth 401 (k), experts advise you to reconsider your automatic contributions. Try to increase them by 1–2%, or at least enough to get your company’s corresponding contribution, even if you cannot fully fund your account.

“For some people, $ 20,500 is an exaggeration,” Elliott said. “It’s a great goal, but they can’t achieve it.”

If you can’t reach the maximum contribution limit, she said, “do your best to find the right employer and then slowly work your way up.”

Check date funds for easy rebalancing

Rate options for old 401 (k) money

And for those who change jobs, If you still have 401 (k) money from your former employer, you can keep the funds there, but you may consider transferring it to 401 (k) with your new employer or IRA. Just don’t cash them, or you will face a potentially significant tax hit and pay a fine based on your age, Young warns.

Also, for new contributions to traditional IRA or Rota, you can invest up to $ 6,000 this year as you did last year. And if you’re 50 or over, the maximum deposit is $ 7,000. If you did not contribute to the IRA in 2021, you have until the April tax filing deadline to do so and count against last year.

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