If you are 60 years old, new 401(k) rules could save you money
Published On Jan 10, 2025, 7:00 AM
The article discusses new changes to 401(k) plans that will come into effect in 2025, particularly aimed at individuals aged 60-63. Under the SECURE Act 2.0, these individuals can make 'super catch-up' contributions, which are higher than regular catch-up contributions currently allowed. This change offers a significant opportunity for those nearing retirement to boost their savings. The new limits allow for contributions of either $10,000 or 150% of the annual catch-up limit, whichever is greater, adjusted for inflation. This is aimed at enhancing retirement readiness as many Americans are living longer, helping them save more during their peak earning years.
Stock Forecasts
VTI
Positive
Increased savings capabilities for individuals aged 60-63 may lead to increased investments into various financial products, including stocks and ETFs, particularly those focused on retirement and long-term growth. Companies that provide investment management services or retirement planning are likely to see an uptick in demand.
SPY
Positive
As individuals build their retirement savings, there may be more capital flowing into established companies with solid performance records. Funds like the SPDR S&P 500 ETF Trust (SPY) can benefit from the increased investment activity from this demographic.
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