For those of us with access to tax-advantaged retirement accounts, being over the age of 50 unlocks the ability to make additional contributions to those accounts on a pre-tax basis.
If you’re 50 years or older, however, you will find that the government wants to help you save for retirement. In order to do so, it’s skewed the rules to your benefit on five important types of accounts.
For 2023, anyone can put $6,500 into your Individual Retirement Arrangement (IRA), and even if your spouse isn’t working, you can put $6,500 into your spouse’s IRA.
For 2023, your employee contribution to a 401(k) or 403(b) is $22,500 if you are under 50. But once you turn 50, that goes up to $30,000! That’s an extra $7,500.
If you have been at a qualifying employer for at least 15 years, you may put in an additional $3,000 per year into your 403(b) as a catch-up contribution.