Please note: This podcast may contain outdated information about RMDs and retirement accounts due to the SECURE Act 2.0, a law governing retirement savings (e.g., among other provisions, the SECURE Act 2.0 will raise the age at which individuals must begin taking required minimum distributions (RMDs) from their retirement account to 73, beginning in January 2023). For more information about the SECURE Act 2.0, please read this article or speak with your financial consultant. (1222-240S)
Transcript of the podcast:
After you listen
- To learn more about retirement plans for small business owners, check out schwab.com/smallbusiness.
- Of course with any major financial decision, you should probably consult with a financial planner or a CPA to help guide you through the process. You can find a Schwab consultant at schwab.com/consultant.
Saving for retirement can seem overwhelming—especially if you are 50 years old and haven't saved nearly enough. Fortunately there are some provisions in the tax code that allow you to make additional contributions to tax-advantaged accounts. In this episode, Mark Riepe examines some of those provisions as well as a few biases that might actually help you get back on track.
Mark is joined by Hayden Adams, director of tax and financial planning for the Schwab Center for Financial Research. They discuss the catch-up provisions available with employer-sponsored plans as well as individual plans.
- You can read more about the specifics of each type of catch-up contribution allowed at IRS.gov.
- The benefits of immediate rewards as they relate to long-term goals are explained in this article from the Personality and Social Psychology Bulletin.
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