Read Time: 2-minute article Play catch-up — even if you don’t need to This content is categorized as: Plan for retirement If you are age 50 or older and are still working for someone else, you have a great opportunity to play catch-up. In 2020, the IRS allows you to put even more tax-advantaged money into your workplace 401(k) plan: $6,500 in catch-up contributions in addition to the $19,500 IRS annual contribution limit ($26,000 total). For IRAs it's the $6,000 annual contribution limit, plus a $1,000 catch-up contribution ($7,000 total). This means you may be able to save up to a grand total of $33,000 in 2020 by taking advantage of catch-up contributions for your 401(k) and IRA. That amount can really add up. For example, if you are age 50 and if you save the maximum amount each year over 15 years, you could put away $292,500 in annual contributions and $97,500 in catch-up contributions for your 401(k)s, and $90,000 in annual contributions plus an extra $15,000 in annual catch-up contributions for your IRAs (based on today’s contribution limits) — and that's if you stop working at 65. If you are self-employed, you
