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4 Ways to Supercharge Your Retirement Savings

Note: Due to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, required minimum distributions (RMDs) for IRAs are waived for 2020. Learn about the RMD waiver > 
When it comes to saving for retirement, maxing out your 401(k) and/or Individual Retirement Account (IRA) is just the beginning. Here are four scenarios in which you may be able to give your savings an extra boost.


Scenario 1: Your spouse doesn’t work

So long as you have earned income, your nonworking spouse can maintain a separate IRA in her or his name—funded from your earnings—effectively doubling your savings potential.

Learn more about Spousal IRAs.

Scenario 2: You have a side gig

If you earn income from freelance work or a side business, you may be able to contribute to a Savings Incentive Match Plan for Employees (SIMPLE) IRA, a Simplified Employee Pension (SEP) IRA or a Solo 401(k)—even if you contribute to a 401(k) offered by your primary employer. Be aware, however, that you may not be able to max out both your company 401(k) and a self-employment retirement plan, so be sure to check IRS rules at irs.gov/retirement before contributing.


Learn more about Schwab’s small-business retirement plans. 


Scenario 3: You participate in a high-deductible health plan

Participants in such plans are eligible to open a triple-tax-advantaged health savings account (HSA): Contributions are federally tax-deductible; capital gains, dividends and interest accumulate tax-free; and you pay no tax on withdrawals for qualified medical expenses. Beginning at age 65, HSA withdrawals used for any other purpose will be taxed as ordinary income, putting them on the same footing as funds from an IRA. Best of all, HSAs aren’t subject to required minimum distributions (RMDs) based on your age , giving you greater control over withdrawals.

Read more insights on maximizing your retirement savings.


Scenario 4: You’re age 50 or older

Starting in the year you turn 50, the IRS allows you to save an extra $6,500 annually to your 401(k) and $1,000 annually to your IRA, thanks to catch-up contributions. That means in 2020 you can put away as much as $26,000 in your 401(k) and $7,000 in your IRA.

Learn more about IRAs
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Important Disclosures

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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