Catch up provisions
One of the easiest ways for those over 5) to increase available income is to take advantage of the increased ceiling on allowable annual contributions for qualified retirement plans.
If you are trying to maximize your available income stream once you stop working, be sure to avail yourself of the increased maximum allowable contribution amounts under the latest “catch up” provisions.
If you’re over 50 and have 401(k) or IRA, you can defer up to $25,000 in a 401(k). If you are self-employed and have a high enough income, that could up to be $62,000 using a Solo(k) plan.
If you have a traditional or Roth IRA, those limits are set at $7,000 for those 50 or older.
