Plan Provisions Allow for Catching Up on Your Retirement Savings

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Supplemental retirement plans enable you to save for retirement on a tax-deferred basis or with tax-free growth. For those who may be behind in saving for retirement, these plans offer provisions to “catch up” on savings contributions.

The 403(b) and 457(b) governmental plan (through Ohio Deferred Compensation) offer a catch-up provision for individuals age 50 or older. In 2021, an educator age 50 or older could contribute the annual limit of $19,500 plus the allowable catch-up contribution of $6,500 — for a total 2021 contribution of $26,000. Contribution limits for 2022 and after may change and limits are indexed for inflation.

Click here for further details on plan features, contribution limits and available resources for establishing a supplemental retirement plan.