Have you starting to realize that you may not have enough saved to be able to retire? Maybe you've got plenty and you're just looking to shelter a few extra dollars from taxes this year. Either way, if you're 50 years old or greater, there's a solution.
Catch up contributions will allow you to exceed the maximum contribution limit by $5,500 in tax years 2013 and 2014 as long as you meet the age requirement. You can make these extra payments to a 401(k), 403(b), SEP IRA, or 457 deferred comp plan.
But Chris, can I make catch up contributions to my Roth or Traditional IRA? The short answer is yes! You can exceed the maximum contribution limits after 50, but by $1,000.
The important thing to remember is that if you're older now and hopefully able to put a few extra dollars away above the maximum amount, you have the opportunity. Give us a call. We can review your retirement plans to find a way that works well for you to maximize your savings.