Deadlines are quickly approaching when it comes to retirement plans, and if you miss them you may get slapped with penalties.
There are a few key things you should be aware of depending on what retirement plans you have.
Every plan has different rules, so it’s important to know exactly what you’re dealing with.
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Here are a few things you should know regarding your retirement before 2022
Everyone should think about maxing out their 401k by the end of they year if they have one.
Before employer contributions, people may put up to $19,500 per year into the account.
Workers over the age of 50 could put catch up payments in worth $6,500 in 2020 and 2021.
This made it so anyone over the age of 50 could contribute up to $26,000 for the last two years.
The IRS will raise contribution limits to $20,500 in 2022.
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By contributing as much as you can by the end of the year, you can reduce your income tax and get a smaller tax bill.
You may need to make a Required Minimum Distribution and withdraw a certain amount from your retirement.
These are set amounts required to be withdrawn annually by age 72 or later when you retire.
Your first RMD can go beyond Dec. 31, but after that the deadline remains Dec. 31 every year.
RMD rules apply to IRAs, traditional simplified employee pension IRAs, saving incentive match plans for employees IRAs, 401ks, Roth 401ks, 403bs, and 457bs.
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