How much is a catch-up contribution?

Of this, $20,500 is the standard contribution limit that applies to everyone, and $6,500 is a catch-up contribution. In 2023, the maximum annual contribution allowed is $30,000 (the $22,500 standard contribution, plus the catch-up contribution of $7,500). Should I Make Catch-Up Contributions?

What is a catch-up contribution in 2023?

This additional contribution increases to $7,500 in 2023. This is known as a catch-up contribution, and it applies from the start of the year to those turning 50 at any time during the year. So, even if you turn 50 on New Year’s Eve, you can still make this extra contribution for that tax year.

What is the 401(k) catch-up contribution limit?

The catch-up contribution limit for employees age 50 and over who participate in 401 (k), 403 (b), most 457 plans and the federal government's Thrift Savings Plan will increase to $7,500. The catch-up contribution limit for employees age 50 and over who participate in SIMPLE plans will increase to $3,500, up from $3,000.