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