Workers 50 and older can kick in an additional $5,000 this year as their so-called catch-up contribution.

If sudden withdrawals reduce the plan's finances below a certain level, the company can be required to make large catch-up contributions in a short time.

People who will be over 49 during 2002 can make an additional $1,000 catch-up contribution, provided that the plan sponsor allows it.

Beyond allowing the catch-up contributions, the 2001 law raises all annual contribution limits.

For those 50 and older, you can contribute another $5,500, known as a "catch-up contribution," as long as your plan allows them.

This additional contribution is often referred to as a catch-up contribution.

This option for making catch-up contributions is only available under governmental 457 plans.

It also allows larger "catch-up" contributions by parents returning to work.

People over age 50 could make additional, catch-up contributions of $5,000 to their 401(k)'s, versus an additional $2,000 in 2003.