What is the Catch-up IRA Contribution?
Under the EGTRRA, individuals who have reached age 50 and who meet the law’s Adjusted Gross Income limits for regular contributions for the year may make additional “catch up” IRA or Roth IRA contributions to make up for possible missed retirement savings opportunities earlier in life. The otherwise maximum IRA Contribution annual limit for a person who has reached age 50 by the end of the tax year (before application of the Adjusted Gross Income phaseout limits) was increased by $500 for 2004 through 2005 and $1,000 for 2006 and beyond.
