For over 50: 'catch up' contributions



Retirement Once you turn 50, you are allowed to make "catch-up contributions" to retirement-savings accounts like 401(k)s and individual retirement accounts which means you can put in more cash annually than younger investors.

In 2014,  people age 50 and above can put as much as $23,000 of their pretax pay in a 401(k) or 403(b) plan, $5,500 more than younger investors. They also can contribute a total of $6,500 to traditional or Roth IRAs, $1,000 more than their younger counterparts.

 

At age 59 1/2, you can now take distributions without a penalty from most retirement accounts. Also at this age, you also become exempt from the usual rule that requires money converted from a traditional IRA to a Roth IRA to stay in place for five tax years and not incur a penalty.