Catch-Up Contributions

A great discussion from a high school classmate this weekend highlighted an important retirement planning question: Does the timing of your 401(k) contributions - such as maxing out your account before year-end - affect employer matching calculations? The conversation also touched on catch-up contributions and the opportunities they can create for retirement savers. Are you turning 50 or older this year? If so, you may be eligible to make catch-up contributions to your retirement accounts, allowing you to save beyond the standard annual contribution limits and potentially strengthen your long-term retirement outlook. **Important for 2026: Catch-up contributions are required to be made on a Roth basis, meaning contributions are made with after-tax dollars and taxed at your current income tax rate. Additionally, if you anticipate needing access to some of your savings before age 59½, it may be worth evaluating whether a portion of your savings strategy should be directed toward non-retirement investment accounts to provide greater flexibility. Retirement planning is about more than maximizing contributions - it’s about finding the right balance between tax efficiency, liquidity, and long-term goals. If you'd like help evaluating your contribution strategy, retirement savings options, or overall financial plan, reach out. Together, we can determine the approach that best aligns with your individual goals and circumstances. #401K #Roth401K #catchupcontributions #savings #savingsstrategy #tesseraemodernwealth #financialplanning #wealthmanagement #cfp #femalecfp #womeninwealth https://www.upstreamip.com/resource-center/retirement/catch-up-contributions

Catch-Up Contributions

Have A Question About This Topic?

Related Content

Making Sense of HSAs and FSAs

You May Need to Make Estimated Tax Payments If…

Personal Finance Tips for Military Families