Certified Employee Benefit Specialist (CEBS) Retirement Plans Associate (RPA) 1 Practice Exam 2025 - Free RPA Certification Practice Questions and Study Guide

To make catch-up contributions to an Individual Retirement Account (IRA), individuals must be at least 50 years old. This provision is designed to help those who may not have saved enough for retirement due to late starts or other financial hurdles. By allowing individuals aged 50 and older to contribute additional amounts to their IRAs, the tax code acknowledges the time constraints that older workers face in building their retirement savings.

The catch-up contribution limit is separate from the regular contribution limit. For example, as of 2023, the standard contribution limit for individuals under 50 is $6,500, but those aged 50 and over can contribute an additional $1,000, bringing their total limit to $7,500. This targeted strategy supports retirement savings at a crucial time for those nearing retirement age.