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Making Catch-Up Contributions

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# Making Catch-Up Contributions
This playbook describes the process for individuals over 50 to make catch-up contributions to their 401(k)s and IRAs. It outlines the steps required to take advantage of these higher contribution limits to enhance retirement savings.

### Step 1: Verify Eligibility
Ensure you are eligible for catch-up contributions by confirming that you are age 50 or older in the year for which you want to make the catch-up contributions.

### Step 2: Review Limits
Familiarize yourself with the current year&#x27;s contribution limits for 401(k)s and IRAs from IRS guidelines. Note that these limits can change annually.

### Step 3: Check Plan Rules
Contact your 401(k) plan administrator or IRA custodian to verify that your plan allows for catch-up contributions and understand any specific rules or procedures they may have.

### Step 4: Determine Amount
Decide on the amount you want to contribute as a catch-up. Remember it should be within the legal limits set by the IRS and what you can financially manage.

### Step 5: Adjust Payroll
If making catch-up contributions to a 401(k), coordinate with your employer to adjust your payroll deductions accordingly to account for the higher contribution amount.

### Step 6: Make Contributions
Proceed to make the additional catch-up contributions either through payroll deductions for a 401(k) or by funding your IRA through your chosen financial institution.

### Step 7: Monitor Contributions
Keep track of your contributions throughout the year to ensure you are on target and do not exceed the annual catch-up contribution limit.

## General Notes

### Tax Considerations
Consult with a tax advisor to understand how catch-up contributions may affect your tax situation, particularly if you&#x27;re making non-deductible IRA contributions.

### Timing
Be aware of the deadline for making contributions for the tax year, which is usually April 15th of the following year, but always check current year deadlines.