4. Allocate more money for retirement
Did you know you can actually give up to $19,500 to a 401(k), 403(b), or federal Thrift Savings Plan? Even better: if you’re over 50 you can get up to $6,500 in terms of contributions. The best part when it comes to pretax contributions? They can actually lower your tax bill significantly.
If your employer decides to opt for a Roth 401(k), you can make contributions that will not reduce your taxable income as we speak, but, in retirement, you’ll benefit from tax-free withdrawals.
Get in touch with your colleagues from the human resources department in order to see how much you’ve contributed to your 401(k) so far. They can also inform you about possible ways to maximize these contributions.
