While it’s technically never too late to save for retirement, you don’t want to delay saving until retirement is just a few years away. Because of compounding interest, those who begin contributing at an early age definitely have a leg up on those who contribute later, even if they are contributing a lesser amount. All is not lost though, even if you are late to the saving game.
If you are age 50 or older, you can take advantage of Catch-up contributions, which allow you to contribute an additional $5,000 towards a 401(k) above the Internal Revenue Services’ maximum deferral limit of $15,500 (for 2008). To find out how much your nest egg could be at retirement, check out NADART’s retirement calculators.
If you are interested in learning more about the benefits a 401(k) plan can provide to you and your employees, please contact us at (800) 462-3278, ext. 7161 or e-mail nadart401(k)@nada.org.