Catch Up Limits

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I (Shea) “learned” to color inside the lines when I was in kindergarten. The teacher gave us a blank drawing and some crayons. As we completed our project, she walked around the room giving feedback on our work. She said, “That’s nice Shea. Next time, try coloring inside the lines.” Without looking up I replied, “I just don’t see it that way.” For better or worse, that tends to be how I see the world. On occasion, however, I like to know where the lines are … especially when driving! When it comes to retirement planning, the “lines” are also called “limits.” You are limited in what you can stash away, limited in what you can double up on, and limited in what you can take out and when.
Ed Slott just released his Multiple Plan Table so that you can know your limits when doubling up on contributions. For those of you playing “catch-up,” you will find this table very useful.