Catch-Up Contributions for Age 50+
Catch-up contributions are a special provision designed to help individuals aged 50 and older accelerate their retirement savings. The catch-up contribution limit for 2024 remains at $7,500. This is the same as it was in 2023. The catch-up contribution limit is in addition to the standard $23,000 limit. This means that if you are 50 or older, you can potentially contribute a total of $30,500 to your 401(k) in 2024.
Example: If you’re 55 years old and maximize both your standard and catch-up contributions, you could save $30,500 in your 401(k) for the year 2024. This significantly boosts your retirement savings potential.
401k Contribution Limit 2024
A 401(k) is a powerful retirement savings tool many employers offer. This plan allows you to save money on a pre-tax or Roth basis and potentially benefit from employer matching contributions. Maximizing your contributions is crucial for building a substantial retirement nest egg. The IRS regularly adjusts contribution limits to keep up with inflation, and understanding the 2024 limits can help you boost your savings potential.
Table of Content
- 401k Standard Contribution Limit in 2024
- Catch-Up Contributions for Age 50+
- Total 401k Contribution Limits (Employer + Employee)
- Benefits of Maxing Out Your 401k
- Strategies for Reaching the Contribution Limit
- Conclusion