Lesson 24 At Age 50, the Catch-Up Provisions
At age 50, you can make additional contributions to your IRAs, 401(k), 403(b), and 457 plans. These additional contributions were designed to help folks who are not on track for a comfortable retirement to “catch up.” But everyone should take advantage of the additional tax-sheltered savings opportunities if they have access to a decent qualified plan, or if they can make IRA contributions.
Contribution limits for 401(k), 403(b), and 457 plans increase by $5,000 a year at age 50, and IRA contribution limits increase by an additional $1,000 for both Roth and Regular IRAs. Take advantage of this free gift from Uncle Sam to boost your retirement savings.
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