Catch-Up Contributions

Catch-up contributions are additional savings that individuals aged 50 and older can make to retirement accounts, like 401(k)s or IRAs, beyond the standard contribution limits. This option allows older workers to accelerate their savings as they approach retirement, helping them bolster their financial readiness. For example, in 2023, those aged 50 and over can contribute an extra $7,500 to their 401(k) on top of the regular limit. This provision encourages older individuals to maximize their retirement funds and take advantage of tax benefits before they retire.