Remember: Maximize the Super Catch-Up Contribution Before You Turn 64

Clients who are aged 60, 61, 62 or 63 are now permitted to make the largest 401(k) catch-up contributions ever allowed. However, many may overlook the fact that the option ends the year the taxpayer turns 64. The additional catch-up contribution is $11,250, allowing eligible taxpayers to contribute up to $35,750 when considering the otherwise-available $24,500 contribution. When taxpayers reach age 64, the catch-up contribution reverts to the $8,000 amount. Taxpayers turning 64 next year must deposit the super catch-up contribution by December 31 of this year. For taxpayers who are married, the super catch-up is a per-spouse limitation and eligibility is determined based on each individual taxpayer's age. For more information on the rules governing catch-up contributions, visit Tax Facts Online. Read More: Link to Q3761.