Retired? Consider benefits of part-time work

After spending decades in the workforce, you might look forward to the day you retire. But if you’d like to redefine “retirement” to include part-time work or consulting, you could receive some key financial benefits.

First of all, if you have earned income, you can contribute to an IRA – there’s no age limit.

Also, by adding some income from employment, you may be able to withdraw less each year from your retirement accounts.

Here’s another possible benefit from adding earned income: You could contribute more to your grandchildren’s 529 education savings plans, which can help pay for college or other post-secondary expenses.

Finally, the additional income may be able to help you lower your debt load.

A word of caution, though: If you earn enough, you may run into unforeseen tax consequences and pushed into a higher tax bracket. So, before taking on part-time work when you’re retired, consult with your tax advisor.

Overall, though, the financial benefits of part-time employment income during your retirement years may be worth it – so give some thought to “unretiring.”

This content was provided by Edward Jones for use by Rebecca McNutty, CFP, your Edward Jones financial advisor at 636-946-6320.

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