Playing Catch Up

Contributing to tax-deferred retirement plans it a major component in any retirement savings plan; if you're over fifty, you can exceed the normal annual contribution limits.

For 401(k), 403(b), 457(b) and SAR-SEP plans, the catch-up is $6,000 in 2015, which means, if you're over fifty, you can contribute up to $24,000. Beginning in 2016, the maximum catch-up contribution will be adjusted for inflation each year in $500 increments.

For IRA contributors, the Age 50+ catch-up amount is $1,000 for 2015 which is where is has been for the last several years. There is no automatic inflation adjustment to the maximum catch-up contribution for IRAs; however, the IRS has the authority to increase it at any time.

For the most current catch-up contribution limits on all retirement plans, go to http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Catch-Up-Contributions