retirement

8 ways to accelerate retirement savings

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Individuals can contribute a maximum of $5,000 to traditional and Roth IRAs combined. But for those who are 50 and older, the Internal Revenue Service allows an additional catch-up contribution of $1,000.

Assuming a 6 percent annual return, putting in that extra $1,000 for 10 years will add more than $13,000 to your retirement fund, Kiernan says.

The combined traditional and Roth 401(k) contribution limit is $16,500. Those 50 and older may make a catch-up contribution of an additional $5,500 in 2011 if their employer plans allow.


 

 

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