age limit for catch up contribution
To be eligible to make catch-up contributions, you. must be: • age 50 or older during the calendar year in which. the catch-up contributions are made (even if you. become age 50 on December 31 of that year); • currently employed and in pay status; and. • making regular contributions to a civilian or uni-. You are eligible for the higher contribution limits in the calendar year in which you reach age 50. So if you turn 50 in December 2014, you can make contributions that exceed the regular contribution limit under the “catch-up” rules for 2014 and all future years. Let’s go over the specific rules for IRAs and 401(k)s. Some 401(k) plans allow participants to make additional after-tax—but non-Roth—401(k) contributions once the $18,000 (or $24,000 after age 50) participant contribution limit is exceeded, up to the IRS limit of $53,000 (or $59,000 after age 50) for 401(k) contributions from all sources in 2016. In a 401(k) plan, the maximum contribution is $17,500 for 2014 and the additional catch-up amount for those age 50 and over is $5,500. (These limits change in 2015 and can change annually.) 401(k)s are not required to allow catch-up contributions, although most plans do. Fidelity Interactive Content Services LLC (FICS) is a Fidelity company established to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications and FICS-created content. Username: Your username (up to 15 characters) can be a customer ID that you've chosen or your Social Security number (SSN). If you currently use your SSN to log in, you may want to create a unique username instead, for added security. She is age 54 and is a catch-up eligible participant. Elective deferrals to the plan are permitted up to the IRC Section 401(a)(30) limit ($18,000 for 2017). The plan provides for a matching contribution equal to 25% of her elective deferrals. Example - plan-imposed limit. Tom is a participant in a 401(k) plan that permits catch-up contributions and limits elective deferrals to 10% of a participant’s compensation. He is age 52 and is a catch-up eligible participant. For the 2017 plan year, his compensation was $100,000. For 2017 retirement plan limits, see the SHRM Online article In 2017, 401(k) Contribution Cap Unchanged for Employees, Up for Employers. Annual limits and maximums for 401(k) and similar defined contribution retirement plans and for defined benefit pension plans will stay largely unchanged in 2016. •401(k), 403(b) and profit-sharing plan elective deferrals stays at $18,000. •The catch-up contribution limit for participants age 50 or older stays at $6,000. (The catch-up limit applies from the start of the year to those turning 50 at any time during the year.)
Reach age 50