401(K) Catch-Up Provisions: What You Need to Know

 

Since I (Darrell) turned 50 last year, I am now keenly aware of the changes to catch up provisions allowed by IRAs, Roth IRAs & 401k/other employer retirements plans. One of the perks of getting older I guess!

For 2022, here are the allowable contributions to those plans:

  • Traditional IRA: $6,000 + $1,000 Catch Up if Age 50 or older

  • Roth IRA: $6,000 + $1,000 Catch Up if Age 50 or older

  • SIMPLE IRAs: $14,000 + $3,000 Catch Up if Age 50 or older

  • 401k/403b/457: $20,500 + $6,500 Catch Up if Age 50 or older *

    * for 403b and 457, catch up may be capped

The start of the year is a great time to assess whether you can increase your retirement deferrals or contributions, especially if you have reached that magic Age 50 threshold.

Here’s to a great start to the year!!!!

 
 
Laura Myers