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.