Rethinking Retirement: Navigating the New 401(k) Landscape with Anne Tergesen
Hello dear readers! Let's embark on a thrilling journey into the world of 401(k)s and retirement with Anne Tergesen from The Wall Street Journal as our captain! 😜 I promise this isn't a snooze-fest, and it could indeed dictate whether you'll be sipping fancy cocktails or boxed juice in your golden years.
A Glimpse Into Anne's Insight:
Our high-rolling friends, especially those pocketing more than $145,000, are about to get a reality check. From next year, one of their cherished tax benefits is flying out the window.
Here's the old drill: If you're aged 50 or older, you could casually toss an extra $7,500 into your 401(k) annually. It was a slick move, allowing many to delay tax payments and laugh all the way to the bank.
But the times, they are a-changin'! Now, that extra dough needs to be added post-tax, especially for those who netted more than $145,000 the year before. Let's tip our hats to Congress for this surprise.
But, plot twist! Anne reveals that this might not be the apocalypse for everyone's bank accounts. Tucking money into Roth accounts means the cash grows without the pesky tax monster. And when you decide to use it during your golden years? No tax surprise party!
Why This Isn't Just "Cha-Ching" Chatter:
Future Forecasting: Nearing the $145,000 earnings line? Or perhaps you're aiming for it? Time to strategize!
Tax Tango: Decoding tax is like understanding why cats hate water. But it's vital for your long-term piggy bank.
Roth or Traditional Riddle: This can make or break your retirement strategy.
Bigger Than Just Bucks: Beyond personal impact, being in the loop helps you vote wisely, discuss smartly, and stay awake during financial news.
Anne's Five Fabulous Takeaways:
Kaching-Catch-up: Congress is flipping the 401(k) script for those earning above $145k.
Radiant Roths: Roths could be the secret ingredient in your golden years' gourmet life. Tax-free growth is the new black. 🚀
Corporate Chaos: Many companies are scrambling. Imagine the boardroom version of musical chairs!
Tax Tango & Twists: Some high-flyers might pay more, others less. It's like a financial roller coaster, minus the screaming.
Congress' Clumsy Clause?: There's a potential hiccup in the retirement bill. Who's got the eraser?
So, armed with Anne Tergesen's wisdom, be the life of any gathering when 401(k)s crop up. Here's to savvy financial futures and to the wonderful Anne for lighting our path! 🍸 Cheers!
Read the original article here High-Earning Retirement Savers Are Losing Some of Their 401(k) Tax Break