Catch-Up Contributions for Older Workers
Individuals who are age 50 and older can make "catch-up" contributions to a 401(k) or 403(b). The maximum catch-up contribution:
To a 401(k) or 403(b) plan is $1000 in 2002, increased by $1000 each year thereafter to $5000 in 2006.
Is not subject to contribution limits or nondiscrimination tests.
Applies only to plan members to whom no other elective deferral can be made because of limitations in the Code.