Increased contribution limits can help you catch-up with your retirement dreams

Working to fast-track your retirement? We have some good news! If you’re turning age 50+ in 2023 you can now take advantage of increased contribution limits and potentially even greater “catch-up” savings opportunities in the DCP!

How to save more

If you are turning age 50 or above in 2023, you're eligible to save up to $7,500 more in the City of Los Angeles Deferred Compensation Plan (DCP) in 2023. In fact, that means you’re able to save a total of $30,000 this year. What’s more, if you're within three years before your eligible retirement age, the catch-up amount may be even higher. Take a look at the chart below to see how much you can save:

 

To take advantage of this opportunity to save even more, sign into your DCP account by clicking the orange login button in the top right corner of this screen. Then, click on the Contribution & Savings tab, and select Manage Contributions.

*This calculation is provided for employees who choose to contribute the maximum annual amount allowed in 25 regular and equal payments throughout the year, but participants can elect bi-weekly contributions in any amount they choose.

**Employees who are age 50 or older, or who will be turning age 50 at any point in the calendar year, are automatically eligible to contribute the higher amount applying to that calendar year.

***Catch-Up is available for participants who are within at least three years of eligible retirement age. It allows these participants to contribute up to twice the Under-Age-50 contribution amount for three consecutive years without penalty. To be eligible, a participant must have an unused balance representing amounts the participant was eligible to but did not contribute in prior years. To learn more, please contact a DCP representative.