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I understand that if I am 50 years old or older I am able to make a catch-up contribution, but how exactly does that work? Is that in addition to the maximum annual contribution?

April 26, 2017able catch-up contribution Older understand

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I understand that if I am 50 years old or older I am able to make a catch-up contribution, but how exactly does that work? Is that in addition to the maximum annual contribution?

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It is in addition to the annual contribution limit. For example, in 2007, an IRA owner that is 51 years old may be able to contribute the full $4,000 to a Roth IRA or traditional IRA as well as the $1,000 catch-up contribution for a total of $5,000.

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It is in addition to the annual contribution limit. For example, in 2008, an IRA owner that is 51 years old may be able to contribute the full $5,000 to a Roth IRA or traditional IRA as well as the $1,000 catch-up contribution for a total of $6,000.