Getting older has its privileges. If you're age 50 or older, no matter if you've been saving diligently for years or if you've gotten off to a later start, there are many ways you can make catch-up contributions to your retirement savings.
403(b) and 401(k) catch-up contributions
For 2020, the IRS raised the contribution limits for employees who participate in 403(b) and 401(k) plans to $19,500. People age 50 or older, can save even more in their 403(b) or 401(k). The 2020 retirement catch-up contribution is $6,500, allowing you to contribute up to $26,000 per year.
IRA catch-up contributions
If you're age 50 or older, your total contributions to all of your traditional and Roth IRAs is $7,000. If you're age 50 or older, the SIMPLE IRA retirement contribution limit, including catch up contributions, for tax year 2020 is $16,500.
SEP IRAs don't have a catch-up contribution, but there's still good news. The retirement saving amount increased by $1,000 for tax year 2020. This is now capped at $57,000 of savings for the year (or up to 25% of an employee's gross annual salary, whichever is less).
15 years-of-service catch-up contribution
If you're age 50 or older, a public school teacher, hospital employee, welfare service social worker, church employee, or home health service agency worker—with the same employer for 15 years—you may qualify to save even more.
Under the 15-years-of-service catch-up contribution, you could save an additional $3,000 for retirement per year, up to a maximum of $15,000 total.
Whoever said things improve with age could've added catch-up contributions to their list.
So, be sure to find out which of these catch-up contributions you may qualify for.