Playing Catch-Up
You can make additional contributions into tax-advantaged retirement-savings plans if you are 50 or older. Below are the potential increased gains in 15 years if you contribute every year until age 65.
You can make additional contributions into tax-advantaged retirement-savings plans if you are 50 or older. Below are the potential increased gains in 15 years if you contribute every year until age 65.
Annual catch-up 4 percent 6 percent 8 percent
Account Type contribution rate of return rate of return rate of return
401(k), 403(b)
or 457 Plan $6,000 $131,000 $154,000 $182,000
SIMPLE Plan $3,000 $65,000 $77,000 $91,000
Traditional or Roth IRA $1,000 $22,000 $26,000 $30,000
SOURCES: IRS, Abo & Co., McAndrews Law OfficesEndText