Tag Archives: Save for Retirement

IRS Announces Higher 2020 Retirement Plan Contribution Limits For 401(k)s And More | Forbes

How much can you save for retirement in 2020? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020: 401(k) contribution limits are up; traditional IRA contribution limits stay the same; almost all the other numbers are up.

The amount you can contribute to your 401(k) or similar workplace retirement plan goes up from $19,000 in 2019 to $19,500 in 2020. The 401(k) catch-up contribution limit—if you’re 50 or older in 2020—will be $6,500 for workplace plans, up from $6,000. But the amount you can contribute to an Individual Retirement Account stays the same for 2020: $6,000, with a $1,000 catch-up limit if you’re 50 or older.

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How to Pay School Loans and Save for Retirement at the Same Time | Bloomberg

The best time to start saving for retirement is as soon as possible. By saving in your early 20s, you give your nest egg extra time to grow, potentially shaving years off how long you need to work.

But before setting aside money for retirement, most feel the need to retire student loan debt. That’s easy to say but harder to do for millennials exiting college these days. Many are in the same boat as Nolan Grace, a 24-year-old who graduated from Purdue University with “very significant” loans. “It’s the biggest weight on my life right now,” he says.

Luckily, Grace works for an employer—Austin-based software-services company BP3 Global Inc.—that helps him with loan payments in an increasingly popular way. BP3 uses a platform called Student Loan Genius to let it match as much as $100 per month in Grace’s debt payments, one of several companies offering similar benefits. Employees who work for Student Loan Genius customers have more than $61,000 in student loan debt on average, and their monthly payments are usually more than $500 a month.

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