#catch-up-contributions

#catch-up-contributions

It's also important to rebalance on an ongoing basis as you get closer to your spending target.As retirement approaches, we need to spend that money, so you want to de-risk your portfolio and build safer asset reserves. Investors age 50 and above really need to take notice of rebalancing. It's time to take some winnings and build safer assets that you could access if you needed to spend from your portfolio. Moving money into high-quality bonds removes risk and takes advantage of current attractive yields.

This limit was amended under the SECURE 2.0 Act of 2022, and the the annual cost-of-living adjustment will rise to $1,100 in 2026, up $100 from this year's figure. The catch-up contribution limit that applies to most of the 50-and-older worker population will also go up by $500 next year to a cap of $8,000. A higher catch-up limit of $11,250 applies to workers ages 60-63. The IRS clarified that any plan participants who are at least 50 will generally be able to contribute as much as $32,500 per year starting in 2026.