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When to Start Making Catch-Up Retirement Contributions

Supercharge your nest egg by upping your savings in the year you turn 50.

I turn 50 in January. Can I make a catch-up contribution to my IRA for 2014, after my birthday, because I’ll be 50 before the April 15 deadline? Or do I have to wait until 2015 to start catch-up contributions?

That’s a good question. You have to be 50 by December 31 to make a catch-up contribution for 2014, so you will have to wait until 2015 to make your first catch-up contribution. But you can make the contribution as early as January 1, even if it’s before your birthday.

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Catch-up contribution amounts have not yet been set for 2015, but people who are 50 or older in 2014 may contribute an extra $1,000 to their IRAs (bringing their total contribution limit to $6,500) and an extra $5,500 to 401(k)s, 403(b)s and other employer plans (bringing their totals to $23,000). These amounts are usually indexed for inflation every few years.

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