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I turn 50 on 2/1/15. Can I make the $6k catch up contribution in 2015 or do I have to wait until 2016. Thanks.

Nov 10, 2014 by Josie from Fairport, NY in  |  Flag
4 Answers  |  7 Followers
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6 votes
Peter C. Karp Level 20

Josie

You can begin making the catch-up contribution as soon as you are 50 years or older in 2015. Keep in mind that the catch-up contributions are also made through salary deferral. Also be sure that your company plan allows for catch-up contributions. The contributions limits in 2015 are $18,000 plus $6,000 as a catch-up amount.

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Comment   |  Flag   |  Nov 10, 2014 from San Francisco, CA

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2 votes

Good afternoon Josie, yes you can. You can start catch up contributions with in a year you turn 50. Best of luck and let me know if you have any additional questions. Sincerely Michael www.VisinaryWealthMgmt.com

Comment   |  Flag   |  Nov 10, 2014 from Farmington, CT

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Rich Winer Level 20

Josie, You can make a catch up contribution for the year in which you turn 50 and future years. Because it's a bit confusing, I will clarify. In 2015, until April 15, you can technically make IRA contributions for 2014 and 2015. Your ability to make a catch up contribution would only apply the 2015 contribution. Let me know if you have further questions.

3 Comments   |  Flag   |  Nov 10, 2014 from Woodland Hills, CA
Joseph Gissy

Rich and Michael both have great advice. Just to add to it, the catch up contributions for both 2014 and 2015 will be $6,500.

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Flag |  Nov 10, 2014 near Woodland Hills, CA
Peter C. Karp

Joseph....don't you mean the 401k catch-up contributions are $5,500 for 2014 and $6,000 for 2015 and the IRA catch-up contributions are $1,000 for both 2014 and 2015

Flag |  Nov 10, 2014 near San Francisco, CA
Joseph Gissy

Yes Peter, I stand corrected thanks for the heads up.

Flag |  Nov 11, 2014 near Woodland Hills, CA

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0 votes

Great question, Josie! You will be eligible to make 401(k) catch-up contributions in 2015. Also, you may also be able to make catch-up contributions of $1,000 to an IRA or Roth IRA in 2015. Whether or not you can make deductible IRA contributions or contribute to a Roth depends on your income. If you’re already maxing out your 401(k), then you may want to consider contributing to those accounts in order to further boost your retirement savings, provided it’s an option available to you.

The IRS has more information about traditional and Roth IRA rule on its website: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits.

Comment   |  Flag   |  Dec 02, 2014 from Township of Anderson, OH

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