Age 50 Increase Contribution
Good morning.
I have a question…I will be turning 50 years old in July.
I have been contributing the max amount to both my 401K ($18k) and after tax IRA ($5500).
Am I eligible to increase my 401k contribution (to the $24k level) to take into account the ‘over 50 rule’?
If so, can I start to contribute the extra amount now or do I have to wait until I actually turn 50?
Also, does the same apply to my after tax IRA? I can now contribute $6500 in this calendar year?
Appreciate your guidance and assistance.
Regards
Steven
Permalink Submitted by Alan - IRA critic on Sun, 2017-05-21 16:17
Yes, the age 50+ contribution limit increase to both plans applies to the entire year in which you reach 50, so you can make the new full contribution as early as January.