Skip to main content

401K Catch-up contributions

Did you know that eligible Plan Participants can make savings Catch-up contributions into their company 401(k) account beginning on or after the year in which they turn 50?

What are catch-up contributions?
“Catch-up contributions” are supplemental tax-deferred employee contributions that are in addition to regular contributions.  These supplemental contributions can be made by participants age 50 or older who would like to make contributions above the maximum amount they could otherwise make to the 401(k) Plan.

Who is eligible to make catch-up contributions?
To be eligible to make catch-up contributions, a participant must be:
·  age 50 or older during the calendar year in which the catch-up contributions are made   (even if the participant becomes age 50 on December 31 of   that year),
·  currently employed and in pay status,
·  contributing either the maximum contribution percentage allowed or contributing an amount that will cause him or her to reach the Internal Revenue Service (IRS) elective deferral limit by the end of that year which is $18,000 in 2017.
·  your plan has to permit catch-up contributions (90% do!)

How much can I contribute?
If you are eligible, you can contribute up to the annual maximum dollar amount ($6,000 in 2017) allowed by the IRS.  Catch-up contributions have an annual IRS limit, just as regular contributions have an annual IRS elective deferral limit.

What if I already have catch up elections being withheld in 2016?
Then you do not need to do a thing.  

How do I elect to make catch-up contributions or change the amount that I currently contribute?
·         Log on to your company's 401(k) provider.

Comments

Popular posts from this blog

Male logic joke

*This is a story which is perfectly logical to all males:*   A wife asks her husband, "Could you please go shopping for me and buy one carton of milk, and if they have eggs, get 6."   A short time later the husband comes back with 6 cartons of milk.  The wife asks him, "Why the hell did you buy 6 cartons of milk?"   He replied, "They had eggs."

Funny dog pictures - If Dogs Worked in Offices

Share this here:

Earth's wobble causes global warming

EARTH’S WOBBLE CAUSES GLOBAL WARNING, NOT CO2 EMISSIONS OR OCEAN CURRENTS, PER TEAM HEADED BY OSU RESEARCHER Digital Journal, “Debate Ends on Central Cause of Earth’s Cooling & Warming,” 8 Aug 2009; Space Daily, “Ice Ages Linked to Slight Shifts in Solar Radiation,” 24 Aug 2009; The Kiplinger Letter, “Climate Change Legislation, What it Means to Business,” 18 Aug 2009. As the carbon dioxide management bill - aka cap and trade - looms in Congress, a new study from Oregon State University emerges that ends the scientific debate on the central causes of ice ages and warming periods on Earth. Former U.S. Vice President Al Gore is fond of saying that the scientific debate on global warming is over - and while he may now be correct in the fact that a debate has come to an end, the central cause behind climate change does not support the carbon cap legislation that is being cobbled together by Mr. Gore and his Democratic allies in the U.S. Congress. The ear