Ask MissionSquare Retirement: What are some of the ways to catch up on retirement savings?

There are several opportunities to save more as you get closer to retirement. Starting in the year you turn age 50 (even before your birthday) you can contribute an extra $1,000 to your IRA — boosting the maximum contribution from $5,500 to $6,500 in 2017. You can also add an extra $6,000 to your 457 plan, increasing your contribution limit from $18,000 to $24,000 in 2017.

Or, if you're within three years of the "normal retirement age" specified in your 457 plan documents, you can contribute up to double the annual limit (up to $36,000 in 2017) if you haven't maxed out your contributions in the past. You can't double dip, though, by making both the pre-retirement catch-up and the age 50 catch-up contributions in the same year.

For more information about the rules for catch-up contributions, visit www.icmarc.org/contributionlimits. Have a question for us? Send your question to AskUs@icmarc.org.  

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