If you're age 50 or older, you can take advantage of Age 50 Catch-up paycheck contributions to help you bridge any gap you may have in your retirement savings. With the catch-up option, you can contribute above the regular IRS limits.
In 2018, the annual contribution limit is $18,500 and the Age 50 Catch-up limit is $6,000. If you maximize this opportunity,
you can contribute up to $24,500 in 2018.
The table below shows how much extra savings you could potentially accumulate by taking full advantage of the Age 50 Catch-up
contribution (assuming it remains at $6,000) for five, 10, and 15 years.
Number of Years |
Total Contributions
(years x$6,000)
|
Year-End Value |
---|---|---|
5
|
$30,000
|
$34,885
|
10
|
$60,000
|
$81,940
|
15
|
$90,000
|
$145,409
|
FOR ILLUSTRATIVE PURPOSES ONLY. This hypothetical illustration is not intended as a projection or prediction of future investment results or as financial planning or investment advice. It assumes a $500 monthly contribution, a 6% annual rate of return and reinvestment of earnings with no withdrawals. Rates of return may vary. The illustration does not reflect any associated charges, expenses or fees. The tax-deferred accumulation shown would be reduced if these fees were deducted.
Subject to the terms of your plan. Contact your plan administrator for more information.