NEARING RETIREMENT

Maximize savings & fine‑tune your plan

As retirement nears, it's more important than ever to make sure you're financially prepared and making adjustments as needed.
1

Sharpen the focus of retirement goals

Review your retirement plan and see where you stand. If you're off track, take action—whether it's stricter budgeting, larger contributions or both.
Catch-up contributions can help boost your retirement savings. In 2023, if you are 50 or older1, you can contribute an additional $7,500 to your 401(k) and an additional $1,000 to your Traditional or Roth IRA.
Read:
Retirement savings catch up: Steps to consider now
Sharpen your focus on retirement
2

Changing Jobs?
Consider your choices

A Rollover IRA offers an easy way to maintain the tax-deferred status of your retirement plans, while consolidating your assets into one easy-to-manage account. Consider all of your choices and learn if a rollover IRA may be right for you.2
Learn more:
Rollover IRAs
Read:
Job-changer's financial checklist
3

Update your asset allocation

As your investment time frame and goals change, you may need to adjust your asset allocation. Many experts suggest reevaluating your asset allocation periodically or whenever you experience a milestone, like a marriage or birth.3
Read:
Revisit your asset allocation
4

Develop a retirement date strategy

Social Security is an important part of your retirement strategy. Research and consider the most advantageous time to take your benefit. The longer you wait, the more you'll get.4
Read:
Develop a Social Security & retirement date strategy
1

Prepare for your retirement needs

There are many financial considerations to think about beyond your basic living expenses. A little planning goes a long way, whether it's deciding whether to downsize, considering part-time work or looking at ways to manage health care costs.5
Read:
7 steps to prepare for your upcoming retirement
Plan now for health care costs
Preparing financially when you're nearing retirement
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2 You have choices about what to do with your 401(k) or other type of plan-sponsored accounts. Depending on your financial circumstances, needs, and goals, you may choose to roll over to an IRA or convert to a Roth IRA, roll over a 401(k) from a prior employer to a 401(k) at your new employer, take a distribution, or leave the account where it is. Each choice may offer different investments and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment (particularly with reference to employer stock), and provide different protection from creditors and legal judgments. These are complex choices and should be considered with care. For more information on rolling over your IRA, 401(k), 403(b) or SEP IRA, visit our rollover page or call a Merrill rollover specialist at 888.637.3343.

Important risk disclosures

1 You are treated as being age 50 or older if you will turn age 50 or older at any point during the calendar year.
3 Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.
4 This material should be regarded as general information on Social Security considerations and is not intended to provide specific social security advice. If you have questions regarding your particular situation, please contact your legal or tax advisor.
5 This material should be regarded as general information on healthcare considerations and is not intended to provide specific healthcare advice. If you have questions regarding your particular situation, please contact your legal or tax advisor.
Footnote
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
A direct rollover occurs when you request that a rollover check be made payable directly to the new custodian for the benefit of your individual retirement account (IRA) or employer-sponsored retirement plan. A direct rollover is not subject to current tax or penalties.
An indirect rollover occurs when you request that a rollover check be made payable to you, after which you deposit the money into your IRA or another employer's retirement plan within 60 days. When such a distribution is made by the plan, the plan is required by law to withhold 20% of the taxable amount for prepayment of federal income taxes. If you wish to rollover the entire distribution, you must make up the 20% withholding out of your own funds, or you will be subject to income taxes and possibly early withdrawal penalties on the shortfall. If you fail to complete the rollover within 60 days, all or part of the money distributed to you will be taxable and a 10% additional tax for early withdrawals may apply.
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