IRA
3 questions
- Finance
What are catch-up contributions?
Catch-up contributions let people aged 50 and older contribute extra money to retirement accounts beyond the standard annual limits. For 2025, the catch-up for 401(k) and 403(b) plans is $7,500, with a special higher catch-up of $11,250 for ages 60–63 introduced by the SECURE 2.0 Act.
- Finance
What are the IRA contribution limits?
In 2026, you can contribute up to $7,500 per year to an IRA if you're under 50, or $8,600 if you're 50 or older. This limit is shared across all your IRAs — you cannot contribute $7,500 to a Roth and another $7,500 to a traditional IRA in the same year.
- Finance
When can I withdraw from my IRA without penalty?
You can withdraw from any IRA without the 10% early withdrawal penalty at age 59½. For a Roth IRA, earnings also need to have been in the account for at least 5 years (the '5-year rule') to be tax-free. Roth IRA contributions — but not earnings — can be withdrawn at any age with no tax or penalty.