A recent survey revealed that only 18% of workers feel very confident about having enough money to live comfortably through their retirement years, while 36% are not confident at all. At Kendall Capital, we believe it doesn’t have to be this way.
In 2001, Congress passed a law designed to help older workers make up for lost time. This generous provision, known as the “catch-up” contribution, allows workers over age 50 to contribute more to their qualified retirement plans than younger workers.
How It Works: For 2024, contributions to a traditional 401(k) plan are capped at $23,000.
However, if you’re over 50—or will turn 50 before the end of the year—you can set aside up to $30,500. This extra $7,500 annually in a tax-deferred retirement account can significantly boost your retirement savings and the income it generates.
- Confidence in Retirement Savings: Only 18% of workers are very confident about having enough money for a
comfortable retirement, while 36% are not confident. - Catch-Up Provision: Workers over age 50 can make additional contributions to their retirement plans beyond the
standard limits, thanks to a law passed in 2001. - Impact of Extra Contributions: Setting aside an extra $7,500 annually into a tax-deferred retirement account can
significantly increase the account balance and the income it generates in retirement.
At Kendall Capital, we specialize in helping clients maximize their retirement savings.
Don’t let your retirement confidence wane—take advantage of catch-up contributions and secure your financial future.