Core Insights - Social Security is a critical component of retirement income for many seniors, with 67% relying on it for over half of their total income [1] - A significant portion of seniors, approximately one-third, have additional income sources, which necessitates a focus on tax minimization strategies during retirement [1][2] Group 1: Retirement Priorities - It is essential for retirees to clarify their top priorities before sequencing their income sources [3] - A 2023 report indicates that 20% of retirees prioritize creating an inheritance or financial legacy, which influences how they should manage their income sources to maximize savings longevity [4] - Conversely, some retirees prioritize maximizing income and lifestyle expenses during their healthier years, with 35% expressing concern about declining health requiring long-term care [5] Group 2: Income Sequencing Strategies - Retirees with diverse income sources, including Social Security and tax-advantaged accounts, are in a favorable position to develop a tailored income strategy [7] - Establishing clear priorities allows retirees to work with financial advisors to create a comprehensive strategy for claiming retirement income from various sources [6]

That could be much less depending on your work record and when you claim your benefit; if you don’t wait until your full retirement age of 67, your benefit will be permanently reduced.As of August 2025, the average Social Security retirement benefit for a retired worker was $2,008 per month. That’s just $24,000 a year. (3)So there’s a legitimate reason for working Americans to be concerned. Regardless, even if a solution is found and benefits aren’t slashed, the average Social Security retirement benefit ri ...

Canva: cyano66 from Getty Images and gerenme from Getty Images Signature Quick Read Retirees with heavy stock exposure face severe risk. The S&P 500 dropped nearly 40% in 2008. The rule of 100 suggests subtracting your age from 100 to determine stock allocation percentage. Conservative portfolios heavy in bonds or CDs may fail to outpace inflation and erode purchasing power. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize ...

Core Points - The article discusses upcoming changes to 401(k) contribution limits and rules for higher earners starting in 2026 [3][4] - It highlights the increased contribution limits for 401(k) plans, with the maximum contribution for those under 50 rising to $24,500 and for those 50 and older to $32,500, including catch-up contributions [4][5] - A specific exception is noted for individuals aged 60 to 63, allowing a catch-up contribution of $11,250, leading to a total contribution of $35,750 [5] - Higher earners with an income exceeding $145,000 in 2025 will be required to make catch-up contributions to a Roth 401(k) instead of a traditional 401(k) [7] - The article emphasizes the tax implications of Roth 401(k) contributions, which are made on an after-tax basis but offer tax-free growth and withdrawals in retirement [9][10] - It also mentions the importance of tax diversification in retirement savings and the growing adoption of Roth features in 401(k) plans by employers [11]

If you moved $25,000 from checking into a savings account paying 4%, you’d collect about $83 in in interest per month—or roughly $1,000 a year—just for keeping it in a high-yield account.That’s why keeping far more in checking than you need for monthly bills—like the $33,000 this Redditor holds—quietly works against you. A better approach is to leave only what you typically spend in a month, plus a small cushion to handle surprises, in your checking account. Then move the rest into a high-yield savings acco ...

Key Points Surprisingly, folks well into their retirement years appear to have preserved a great deal of their initial retirement nest egg. Remember, however, that the averages are skewed higher by a small handful of very successful savers. Worry less about where others are and more about making the most of the time and money you have. The $23,760 Social Security bonus most retirees completely overlook › You've probably got a good idea of how much the average person saves for retirement as they ...

Core Insights - The article discusses the eligibility criteria for deductible IRA contributions in 2026, emphasizing the impact of income and marital status on these deductions [2][4][6] Group 1: Deductible IRA Contributions - High earners who are active participants in employer-sponsored retirement plans, such as 401(k)s, face limitations on deductible IRA contributions based on their income and marital status [4][6] - For single active participants, the income threshold for full deductibility is $81,000 or less, with a reduced amount applicable for incomes between $81,000 and $91,000, and no deduction for incomes above $91,000 [6] - For married couples filing jointly, the thresholds are $129,000 for full deductibility, $129,000 to $149,000 for a reduced amount, and no deduction for incomes exceeding $149,000 [6] Group 2: Contribution Limits and Non-Deductible Contributions - The annual limit for IRA contributions will increase to $7,500 for adults under 50 and $8,600 for those aged 50 or older by the end of 2026 [6] - Individuals who cannot deduct their contributions can still make non-deductible IRA contributions, which do not provide an initial tax break but allow for tax-deferred growth on earnings [7][10] - Non-deductible contributions may lead to a higher tax bill in the year they are made, but withdrawals of these contributions will not incur taxes [9][10] Group 3: Tax Implications and Alternatives - Withdrawals from traditional IRAs containing both deductible and non-deductible contributions are taxed proportionally, meaning a portion of the withdrawal may be tax-free [11] - Individuals may consider contributing to a Roth IRA instead, which allows for tax-free growth and withdrawals under certain conditions, or increasing contributions to employer-sponsored plans like 401(k)s, which may offer higher deductible limits [12][13]

Paired with high-deductible healthcare plans, health savings accounts help ease healthcare costs. HSAs are a triple tax-advantaged vehicle in the tax code, allowing for pretax contributions, tax-free compounding, and tax-free withdrawals for qualified medical expenses. However, few owners fund their HSAs to the maximum, and even fewer invest their HSA dollars outside a savings account. Most consumers likely don’t fill their HSAs because they lack the financial means; critics note that the HDHP/HSA combina ...

jacoblund / Getty Images Understanding how cash balance pensions work can help you boost your long-term wealth. Key Takeaways Cash balance pensions make up almost 50% of all defined benefit plans. They combine features of a traditional pension and 401(k). The employer-funded contributions and interest guarantee growth annually without the investment risk. Cash balance pensions have seen significant growth over the past two decades, with their numbers increasing 15-fold and now accounting for nearl ...

Key Points HSAs let you save for healthcare expenses in a tax-advantaged manner. With limits rising in 2026, you have a prime opportunity to sock away even more money for healthcare expenses. If you have new health insurance, make sure you understand whether your plan qualifies for an HSA or not. The $23,760 Social Security bonus most retirees completely overlook › I'm the type of person who really does not mind working hard. You know what I do mind? Paying taxes. Of course, I realize that to so ...