Beneath the SECURE Act of 2019, people could make catch-up contributions to their retirement accounts as soon as they attain age 50. These contributions are along with the common contribution limits, and so they enable people to avoid wasting extra money for retirement. The catch-up contribution restrict for 2023 is $1,000 for 401(okay) plans and $750 for IRAs, and it’s scheduled to extend to $1,500 for 401(okay) plans and $1,000 for IRAs in 2025.
Catch-up contributions could be a helpful instrument for people who’re behind on their retirement financial savings. They might help people to extend their retirement financial savings and cut back the chance of operating out of cash in retirement.
