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Can you retire on an extra $1,000?

Can you retire on an extra $1,000?

May 04, 2023

New 401(k) limit still isn’t enough for many to retire.

In 2022, the contribution limit for a 401(k) increased by just $1,000, to $20,500.1 And IRAs? Despite record inflation, their limits stayed the same. It’s no wonder so many are scaling back their retirement plans, or pushing back retirement altogether.

Did you know you can supplement your nest egg with whole life insurance? In addition to providing a death benefit, whole life’s cash value can compound over time, plus its growth rate is guaranteed! Mind if I reach out to see if you’d like to hear more?

1. https://www.irs.gov/newsroom/irs-announces-401k-limit-increases-to-20500

All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.
Some whole life polices do not have cash values in the first two years of the policy and don’t pay a dividend until the policy’s third year. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.

Pub11859 2022-147249 Exp. 11/24