Catching up is hard to do, unless you’re talking retirement savings and you have the power of the US Government behind you. The contribution limits for various retirement accounts are increased if you are over the age of 50 and you can use them to your advantage if you didn’t contribute as much in your younger days. Below is a table listing the contribution limits for each account as well as the catch-up amount for the 2008 tax year.
|Account Type||2008 Limit||Catch-Up Amount|
|401(k), Roth 401(k)||$15,500||$5,000|
|Trad. IRA, Roth IRA||$5,000||$1,000|
So, if you’ve considered increasing your contributions to either account, know that you have a little extra breathing room if you want to contribute more and “catch up.”