What are catch-up contributions?
Generally, when you reach age 55, up to when you are enrolled in Medicare, you can make additional contributions to your HSA to maximize your tax advantages and set aside the money you need. Assuming you are in high-deductible health plan for the full year, the year that you turn 55, you are eligible for the full amount of the catch-up contribution. Please refer to the IRS Contribution/Deductible Guidelines sheet for exact dollar amounts.
Generally, when you reach age 55, up to when you are enrolled in Medicare, you can make additional contributions to your HSA to maximize your tax advantages and set aside the money you need. Assuming you are in an HSA-eligible annual deductible health plan for the full year, the year that you turn 55, you are eligible for the full amount of the catch-up contribution. Please refer to the IRS Guidelines section for exact dollar amounts.
Participants who are age 50 or older, or who will turn age 50 during the calendar year, may make additional before-tax deferral contributions to the ABC Company 401(k) Plan known as a “catch-up contribution”. Catch-Up Contributions are before-tax contributions to the Plan that would otherwise exceed one or more limits on contributions for a participant for the Plan year and are not subject to Internal Revenue Code nondiscrimination rules. For 2008, the annual Catch-Up Contribution limit is $5,000. The contribution amounts may be adjusted for inflation (in $500 increments).
Generally, when you reach age 55, up to when you are enrolled in Medicare, you can make additional contributions to your Definity HSA to maximize your tax advantages and set aside the money you need. Assuming you are in an HSA-eligible health plan for the full year, the year that you turn 55, you are eligible for the full amount of the catch-up contribution. Please refer to the IRS Guidelines section for exact dollar amounts.
Congress has concluded that there may be too little time left for workers over age 50 to save fully for retirement. This is in consideration of the fact that 401(k) plans are relatively new. To help these older workers catch up on missed savings they are allowed additional salary deferral contributions that are not subject to any testing. In 2005 the amount that can be considered catch-up is $4,000.
