Even if you no longer feel like a spring chicken, there are a number of tax benefits available to seniors that may help to increase your nest egg for retirement!

We have rounded up a list of some of the best tax benefits available to seniors in 2022. If you aren’t already taking advantage of these great perks, you may want to seriously consider doing so.

401(k) Catch-up Contributions

If you are over 50 and have access to a 401(k) plan, you can defer paying income tax on $6,500.00 more than younger workers, or a total of $27,000.00 for 2022. This would amount to approximately $1,500.00 in savings for a 50+ worker in the 24% tax bracket.

No Early Withdrawal Penalties

If you are over 59 ½, you can withdraw money from your IRA without incurring the 10% tax with which younger workers would be hit.

Additional IRA Contributions

If you are over 50, you can save an additional $1,000.00 in an IRA, for a total of $7,000.00 in 2022.

Qualified Charitable Distributions (QCDs)

If you are 70½ or older, you can transfer your RMDs (up to $100,000.00) directly to a qualified charity and not owe any income tax on the RMD, while helping a cause that is important to you. If your spouse is also over 70½, they too may make QCDs of up to $100,000.00.

** Tax planning is very specific so you should always consult your own financial and tax advisors for specific recommendations.

As always, we are available to assist you with answering any questions you have about Estate Planning or Elder Law issues affecting you or your loved ones. Please contact our office at (610) 933–8069. When you call, it’s also a great idea to make sure that your will, trust, and other estate planning documents are up to date.

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