NBC 26 — Many Americans are inching closer and closer to retirement age, in fact, according to the census bureau, by the end of the decade there will be 21% of people who are 65 or older.
As working non-retirement-age folks look ahead to their golden years, worries about their 401Ks can be daunting.
Questions about how much they should be saving and if their current retirement plan is on track loom.
To add to the worry of retirement, inflation has now added an unexpected factor. Investment Advisor Representative Nick Letter says that preparation can be your best friend in combating unexpected inflation rates.
“We typically go with the long-term approach when it comes to retirement. When you plan ahead and over a long period of time, things like inflation tend to make less of an impact," said Letter.
However, thanks to updated changes in the federal government’s thrifting saving plan, in 2023 those participating in tax-advantaged employer saving plans will be able to add more to their limit.
In the past, the IRS has allowed up to $20,500 to be contributed to your 401K, however, starting in 2023 that limit will be pushed up to $22,500. The biggest jump the IRS has allowed in decades.
The IRS is just one of the federal agencies that are making changes in the hope to combat increasing inflation rates.
