Reply to 2019 I turn 50 - is there a reason NOT to do 401K catch up?

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Reply to "2019 I turn 50 - is there a reason NOT to do 401K catch up?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Depends on what you have/need. I am over 50 and started the extra contribution as soon as I could. [b]Surely you are saving outside of 401ks [/b]so just think of it as diverting some of your regular savings to tax deferred savings. It's only $6,000 but does save at least $2000 in taxes.[/quote]

I guess it is a question of how you define "saving" outside of 401K.
I get a small pension and my DH has a govt pension - and plans to retire with 30 years of service in 5 years.  At that time he will be in mid 50s and be in a position for a 2nd career. The Federal pension will provide us with over $70K a year or retirement income.  Our house will be paid off.  Kids college paid for.  The 401K (TSP) is our primary savings  [outside of 6 months of emergency cash]

I cant see what the 6K extra will really do for us.

[/quote]

Yes, based on this it is reasonable for you to not to do a 401K catch up. HOWEVER, since you didn't provide this information in the initial question you asked, and based on this most recent update it sounds like you have already made up your mind - I think the whole point of your post was to humble brag, and not really to know the answer to the question.[/quote]

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