Catch-Up Contribution

Catch-up contributions are extra amounts that workers age 50 and older can contribute to retirement accounts above the standard limits. This provision helps those closer to retirement save more aggressively.

2026 Catch-Up Contribution Limits:

Account Type	Standard Limit	Catch-Up	Total (50+)
401(k), 403(b), 457	$24,500	$7,500	$32,000
Traditional/Roth IRA	$7,500	$1,000	$8,500
SIMPLE IRA	$17,000	$3,500	$20,500
HSA	$4,300/$8,550	$1,000	$5,300/$9,550

SECURE 2.0 Super Catch-Up (Starting 2025): Workers ages 60-63 can contribute an additional higher catch-up:

Account	Standard Catch-Up	Super Catch-Up (60-63)
401(k), 403(b)	$7,500	$11,250

Eligibility:

• Must turn 50 or older during the calendar year
• No income restrictions
• Applies per account type, not per account

Catch-Up Contribution Strategy Example:

Scenario	Age 45	Age 55	Difference
401(k)	$24,500	$32,000	+$7,500/yr
IRA	$7,500	$8,500	+$1,000/yr
Total/Year	$32,000	$40,500	+$8,500/yr
10 Years	$320,000	$405,000	+$85,000

Impact of Catch-Up Contributions: Assuming 7% annual return, extra $7,500/year for 15 years:

Years	Extra Catch-Up	Growth	Total Extra
5	$37,500	$6,000	~$43,500
10	$75,000	$29,000	~$104,000
15	$112,500	$76,500	~$189,000

Best Practices:

• Maximize catch-up contributions if you can afford to
• Prioritize employer match first, then catch-up
• Consider Roth catch-up contributions if expecting higher future taxes
• Review contribution amount early each year
• Use payroll adjustments to max out by year-end

Common Mistakes:

• Not increasing contributions at age 50
• Forgetting IRA catch-up (separate from 401k)
• Not planning for SECURE 2.0 super catch-up at 60