Play catch-up5 of 8Individuals 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.More On Catch-up Contributions:7 ways to stretch your retirement incomeCreate a news alert for "retirement" Related Articles:Cash out, roll over or leave 401(k) behindDifference between Roth 401(k), IRAPitfalls of automated retirement plansRelated Links:5 tips for 401(k) investingRebalance your portfolioFund your 401(k) or IRA first? advertisement
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.
More On Catch-up Contributions:
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