Save more for retirement
Maximize your plan contributions to invest more for retirement.
The table below shows the retirement plan contribution limits for 2014. If you’re age 50 or older you may be able to invest even more with “catch-up” contributions. You’ll want to check with your employer about specific limits for your plan.
2014 retirement plan contribution limits
|Plan type||Contribution limits||Additional catch-up contribution limits
(participants age 50 or older)
|401(k), 403(b) and SARSEP||$17,500||$5,500|
Even if you can’t invest the maximum, over the long term, investing just an extra $1,000 a year could really add up. Consider this example, which assumes an 8% average annual rate of return, compounded monthly:
|Contribution||After 10 years||After 20 years||After 30 years|
Please note that this is a hypothetical example and does not illustrate the actual results of a particular investment. The example is based on monthly contributions that total $9,000 and $10,000 annually. The money you take out of your plan is subject to ordinary income tax and, if applicable, to an additional 10% withdrawal on early withdrawals.