How to Accelerate Your Retirement Nest Egg

All the paperwork that comes along with tax season can be a bit overwhelming. But tax season can also be a helpful marker for retirement planning—especially since you’re already looking at all your pay stubs. Why not make the most of this yearly event and determine if your retirement savings are on track?

Building your nest egg is a lifelong process that can be greatly helped by saving the most you can. Here are four ways to step up your retirement savings and get closer to meeting the 2024 maximums:

1. If you are expecting a tax refund this year, consider opening an IRA (or adding to an existing one) with that money to increase your savings with tax-free growth or on a tax-deferred basis.
2. If you receive a raise or end-of-year bonus, you can increase the amount you contribute to your workplace retirement plan with some or all of the additional funds.
3. Take advantage of any employer match available to you to help boost your savings. Some employer-sponsored retirement plans add money to employee accounts, usually based on a specific formula. For example, if you contribute 3% of your salary to your plan, your employer may also add 3%. If eligible, a minor contribution increase on your part could mean doubling what goes to your retirement account each paycheck.
4. Once you turn 50, you can save even more each year through “catch-up” contributions. For 2024, the additional amount for participants age 50 and older in 403(b) or 401(k) plans is $7,500.¹ For those with a Traditional or Roth IRA, it’s $1,000.²

The bottom line: even small increases have the potential to help you accumulate a bigger retirement nest egg.

If you have any questions or want to learn more about your retirement savings options, reach out to your Mutual of America representative.

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