For Boomers Who Have Failed To Save For Retirement, Here Are Some Saving Graces

 
For example, after Boomers hit 50, they can contribute an extra $5500 on top of the $17,000 allowable contributions to employer-based retirement plans.
 
They can also contribute $6000 to their Roth IRAs in 2012 and $6500 in 2013. If a Boomer leaves a job after age 55, they will not be subject to the 10% withdrawal penalty imposed by the Federal government on early withdrawals.
 
Those who have lost a spouse can begin collecting Social Security survivor benefits at age 60 although those benefits will not be as great as they will be if they wait to retirement age to collect.
 
At age 66, Boomers can begin collecting Social Security benefits without any limitations from earnings cap restrictions.
 
Retirement credits for waiting to receive benefits end at age 70. That’s also the age the IRS forces retirees to take withdrawals from traditional IRA accounts or face a 50% penalty. There is no such requirement for Roth IRAs.
 
Knowing these advantages and limitations can help you design an effective catch-up strategy for those clients who have, for one reason or another, so far failed to prepare.

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