Catch-Up Contributions.

In plain English

Catch-up contributions are an extra slice of money that workers age 50 and older are allowed to put into a retirement account on top of the regular annual limit. The idea is to help people who started saving late, or who got behind, add more in their final working years. They apply to plans like 401(k)s, 403(b)s, 457(b)s, the federal Thrift Savings Plan, and IRAs, each with its own catch-up amount. Under the SECURE 2.0 law, there is also a higher catch-up amount for a narrow age band (ages 60 to 63). All of these dollar figures are set by the IRS and adjusted over time, so confirm the current year's amounts before relying on them.

01Why it matters

If you are over 50 and behind on retirement savings, this is the legal way to add more each year, and a few extra thousand dollars compounding for 15 years can meaningfully change what you retire on.

02The math, step by step

A 55-year-old maxes out the regular employee 401(k) limit, then adds the age-50 catch-up amount on top. For 2026, the regular employee deferral limit is $24,500 and the age-50 catch-up is $8,000, for a combined $32,500 (per IRS). For employees ages 60 to 63, a higher catch-up of $11,250 applies under SECURE 2.0, raising the 2026 combined cap to $35,750. The IRS resets these figures most years, so check the current amounts before you plan around them.

03What this is NOT

04Receipts

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