If you turn 50 this year, the federal tax code offers a few ways to contribute more tax-deferred money to your retirement accounts. Here’s a look at how much you can save in some popular plans.
Company Plans
Saving in a 401(k) or 403(b) plan just got a whole lot more exciting. At age 50, you can contribute an extra $6,000 annually. That makes a total of $25,000 a year allowed, which can help you catch up more quickly. Or if your company has a SIMPLE plan, you can put in another $3,000 for a total of $16,000 annually.
Individual IRAs
If you meet income qualifications, you can take advantage of a traditional or Roth IRA’s tax deferral to the tune of an extra $1,000 annually. That makes the total $7,000 you can contribute each year (as long as you have at least that in earned income).