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Participant Corner: Are You Over Age 50?

Participant Corner: Are You Over Age 50?

August 28, 2023

Each month we provide our plan sponsor clients with a participant ready communication piece. All participant corner documents are saved to your Fiduciary Briefcase. Once logged into your account, click on Briefcase > Participant Services > Employee Memos. 

To download a copy of this Participant Corner Memo, click here to login to your fiduciary briefcase, or contact info@definedplanadvisors.com to get a pdf version that you can distribute to your employees.

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Consider making a catch-up contribution to your retirement!

If you contribute $7,500 each year from age 50 to age 67 (17 years), you can make a big impact on your future.

 


*This example is intended for illustrative purposes only.

 

When am I eligible to make a catch-up contribution?

If you turn age 50 anytime in the calendar year, you are eligible to contribute an additional $7,500 into your plan as a catch-up contribution.  This is in addition to the $22,500 annual limit.

Is the catch-up contribution pre-tax or Roth?

Yes, either type of savings are available for your catch-up contribution. Depending on your income, the Secure Act 2.0 may require a change for your situation to Roth (more information to follow).

What does this all mean?

If you wish to save an additional $7,500 per year, you can accumulate over $250,000 in the next 17 years!  As the limits to save increase, you may be able to save even more each year.  Please access your retirement plan provider’s website or consult with your financial professional.