If you are 50 or older, or you will reach age 50 by the end of the year, you may be able to make contributions to your IRA or employer-sponsored retirement plan above the normal contribution limit. Catch-up contributions are designed to help you make up any retirement savings shortfall by bumping up the amount you can save in the years leading up to retirement. Catch-up contributions can be made to traditional and Roth IRAs, as well as to 401(k) plans and certain other employer-sponsored retirement plans. But if you participate in an employer-sponsored retirement plan, check plan rules — not all plans allow catch-up contributions.
How much can you contribute as a catch-up contribution? It depends on the type of retirement plan you have and the tax year for which you are making the contribution.
401(k), 403(b), governmental 457(b) plans:*
- $22,500 regular annual contribution limit and $7,500 catch-up contribution limit in 2023
- $15,500 regular annual contribution limit and $3,500 catch-up contribution limit in 2023
Traditional and Roth IRAs:
- $6,500 regular annual contribution limit and $1,000 catch-up contribution limit in 2023
*403(b) and 457(b) plans also have special catch-up rules that may apply.
Content Prepared by Broadridge Investor Communication Solutions, Inc. Content has been updated to reflect figures for 2023. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Please consult your own legal or tax professional for more detailed information on tax issues and advice as they relate to your specific situation. Raymond James does not provide tax or legal advice. Raymond James is not affiliated with Kiplinger.