3.8 • 1.6K Ratings
🗓️ 20 July 2023
⏱️ 8 minutes
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0:00.0 | Join the Wall Street Journal online October 12th for WSJ Pro Sustainable Business Forum |
0:05.8 | and take away practical advice on how to build a sustainability strategy that's right for your business. |
0:11.5 | From now until September 21st, you can save 25% on your ticket by registering at WSJ.com |
0:18.8 | slash Sustainable Business, no code required. That's WSJ.com slash Sustainable Business. |
0:25.3 | You're sure when he briefing for Thursday July 20th, I'm JR Whalen for the Wall Street Journal. |
0:35.4 | The rules are about to change for retirement savers who make so-called catch-up contributions |
0:40.5 | to their 401k accounts. What the new rule says is that if you are 50 and older and making catch-up |
0:47.2 | contributions and you earn more than $145,000 in the prior year, then your catch-up contribution |
0:55.7 | has to go into a Roth 401k. It can't go into a traditional 401k. We'll talk to WSJ Retirement |
1:03.4 | reporter Anne Turgerson after the break. Don't you wish your life came with a warning app? |
1:18.4 | Well, life doesn't always give you time to change the outcome, but pre-diabetes does. |
1:22.4 | Take the one-minute test today at doihaveprediabetes.org, |
1:25.7 | brought to you by the Ad Council and its pre-diabetes awareness partners. |
1:35.7 | Millions of high-earning Americans who make so-called catch-up contributions to their 401k |
1:40.8 | accounts are in line to lose a popular tax deduction next year. WSJ Retirement reporter Anne Turgerson |
1:47.3 | joins us. So first of all Anne, what does a catch-up contribution and what does it allow 401k |
1:52.8 | account holders to do? So a catch-up contribution is an extra contribution that people 50 and |
1:59.3 | older are allowed to make to their 401k's. So the way it works is this year, the IRS has set a |
2:06.5 | limit of $22,500 that anybody can contribute to a 401k and for an employee, that's the maximum |
2:15.1 | that you can contribute. But if you're 50 or older, you can actually contribute an extra $7500. |
2:22.1 | So somebody who's 50 or older can put in a total of $30,000 this year into their 401k |
2:28.4 | thanks to these catch-up contributions. So how are the rules changing and do they affect more |
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