Episode 2 of 6
The Catch-Up Contribution
Larry learns about the 50+ catch-up contribution rules. He can add $8,000 extra to his 403(b) per year (2026). If he cuts his cable, his gym membership, and his daily coffee shop habit, he can find $625/month. The model shows what that does to his retirement date.
Key Insight
Maxing the $8,000 catch-up on top of the $24,500 standard limit lets Larry shelter $32,500/year (2026). At a 22% marginal rate, that saves $7,150 in annual taxes — and his 403(b) grows to $313k by age 65 instead of $200k.
Model This Scenario
Starting with numbers similar to Larry's situation — adjust any input to make it yours.