Catch up contributions

[G]

I am curious about the less young FI folks on this forum--do you make use of catch up contributions? (IRA, 401k/403b, HSA)

I don't really need more IRA/ERISA/HSA funds compared to my (comparatively) anemic taxable, but it is hard to argue against the benefits of asset protection and known tax brackets (with ability to do Roth conversions down the road).

And mechanically: if you are doing a BDRoth for example, did you just put in the 7k on Jan 2nd even if your 50th Bday isn't until the end of the year?

[CordMcNally]

I can't help with your poll but congratulations on your KFC lunch buffet becoming cheaper.

[G]

I can't help with your poll but congratulations on your KFC lunch buffet becoming cheaper.

Soon! I'm still middle-aged by my estimation.

[spiritrider]

Catch-up contribution limits are always based on the year you will turn that age.

I disagree with your fundamental premise.

Roth contributions are always better than taxable investments.

HSA contributions are even better than Roth contributions. People greatly underestimate qualified medical expenses in retirement. It will be the rare individual who will have too large an HSA account.

While it is possible to have too large a tax-deferred retirement portfolio, that is very unlikely to come from catch-up contributions. It is far more likely to occur from retirement accounts + pension or retirement accounts + 457b accounts.

[Tim]

Soon! I'm still middle-aged by my estimation.

Just an early happy birthday present.

https://www.seniorliving.org/finance/senior-discounts/

Claim it. If challenged flash the DL with a satisfied grin. “See”. Most won’t be able to do the math.

[Larry Ragman]

Yes, I use all of my catch up provisions. I’ll correct tax deferred balances with Roth conversions if necessary after retirement but before SS. But I don’t think will actually be a problem for me since I am building Roth with two MBDR plus two BD Roth.

[StateOfMyHead]

I do and while I'm technically FI I am not now nor will I be fat FI which obviously plays into my strategy.

[VagabondMD]

Yes, my wife and I have made catch up contributions every year that we were eligible and will continue to do so. (She started making them a year earlier than I did .)

[GasFIRE]

I’ve made every single catch-up contribution available since turning 50, both IRA and 401k. Functionally they all ended up in Roth accounts. Over the past 5 years I’ve also been able to take advantage of the MBDR and Roth conversions to the point where Roth accounts and taxable are roughly the same and larger than my now dwindling pre-tax account. I will leave enough in the pre-tax so SS plus future RMDs will fill the bulk of the lower 2 tax brackets when the time comes. That’s the plan for now but subject to change depending on life or tax rule changes.

[OldSoul]

I don't really need more IRA/ERISA/HSA funds compared to my (comparatively) anemic taxable, but it is hard to argue against the benefits of asset protection and known tax brackets (with ability to do Roth conversions down the road).

We are in the same boat as you, but still contribute the catch up to 403b and 457s, and wife's HSA. We live in a very high tax state (10%), with new local taxes (Ugh!) Similar to you, we're planning to do Roth conversions when I cut back to part time, and I establish residence in a 0% tax state. I'm looking for a nice place on the Nevada side of Tahoe.