Article: How to Maximize Catch-Up Contributions in Your 40s

If you have ever thought, “I will never save enough,” there is good news. The IRS offers a special opportunity for those who are getting serious about retirement later in life: catch-up contributions. These are extra amounts you can put into your retirement accounts once you meet certain age or service requirements, and they can significantly change your retirement outlook. 

Here is how it works: The standard limit for 403(b) contributions in 2024 is $23,000 a year. Once you turn 50, you can contribute an additional $7,500 annually. If you have worked at your University for 15 years or more, you may also qualify to contribute up to $3,000 more per year for a limited time. If your University also offers a 457 plan, you could contribute to that as well, effectively doubling your retirement savings potential. 

This is not just about saving more money. It is about giving yourself extra years of potential growth before retirement. Those additional contributions have the power to compound over time, and because they are pre-tax, they can also help lower your taxable income. 

If you are feeling behind, this is one of the fastest and most impactful ways to make up ground. The key is to create a plan that allows you to increase your contributions steadily without putting too much strain on your current budget. 

If you missed it, our last article in this series compared TIAA and Fidelity for mid-career University employees and explained how you can use both together to balance growth and stability. Up next, we will explore how to review your investment lineup and spot hidden fees that may be slowing down your progress. 

Want to see exactly how much more you could save and how that changes your retirement timeline? The

lays it all out for you.