Catch-up Contributions Boost Retirement

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I'm 55 With $1.2 Million Saved - Would Catch-Up Contributions Make a Difference?

Summary

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79% Informative

Catch-up contributions are designed to help people save extra money in tax-advantaged retirement accounts once they hit age 50 .

For 2024 , an eligible saver can contribute an extra $ 7,500 to a 401(k, 403(b), 457 or government Thrift Savings Plan , bringing their total annual contribution to $ 30,500 .

Only around 16% of eligible savers took advantage of catch-up contribution in 2022 , according to Vanguard 's annual “ How America Saves ” report.

SmartAsset ’s free tool matches you with up to three vetted financial advisors who serve your area.

SmartAsset 's RMD calculator can tell you how much your RMDs will be.

An emergency fund should be liquid -- in an account that isn't at risk of significant fluctuation like the stock market.

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