Catch-Up Contribution: How It Works, Limits, Eligibility
If you’ve hit 50 and feel behind on your savings, you could start making catch-up contributions to your retirement accounts. For eligible workers, federal rules raise the limit on how much a person can contribute to their tax-advantaged retirement accounts, giving people ages 50 and older the opportunity to “catch up” their savings before kissing their 9-to-5 goodbye.
How catch-up contributions work
Federal rules — as well as some employer-sponsored retirement plans — set limits on how much an individual can contribute to a retirement account in a given year. But starting the year you turn 50, you can increase those contributions by an amount set by the IRS.
As long as you’re eligible, you don’t have to do anything special beyond ratcheting up your contributions. Once your annual contributions exceed the normal limit, they’re treated as catch-up contributions.
For example, if you contribute pre-tax earnings to a 401(k), the IRS allows you to sock away up to $23,500 in 2025. People age 50 and older can contribute an extra $7,500 as a catch-up contribution. Due to the Secure 2.0 Act, those ages 60, 61, 62 and 63 get a higher catch-up contribution of $11,250.
Catch-up contribution limits in 2025 for 401(k)s and IRAs
Catch-up contributions may be allowed in these retirement plans.
Contribution limit in 2025 | Catch-up contribution limit: Ages 50-59, 64+ | Catch-up contribution limit: Ages 60-63 | |
|---|---|---|---|
401(k), 403(b), 457(b), profit-sharing plans, etc. | |||
Rules and requirements for catch-up contributions
To be eligible to make catch-up contributions, workers must meet certain criteria.
Age: Anyone age 50 and older by the end of the calendar year can make catch-up contributions to an eligible retirement account. You don’t have to wait until the day you turn 50 to increase your contributions. Starting the first day of the year in which you turn 50, you’re eligible to make catch-up contributions.
But remember: Catch-up contribution limits differ depending on your age. Workers aged 50 to 59 and 64 or older have a lower limit than workers aged 60 to 63.
Retirement plan: Some employer plans impose their own contribution limits. Catch-up contributions may still be permitted in that case (i.e., contributions that exceed the plan’s limit are considered catch-up contributions). As noted in the table above, some retirement plans have different catch-up contribution limits set by the IRS.
Earnings: Starting in 2026, high earners face new rules in the SECURE 2.0 Act of 2022. The law states that anyone earning more than $145,000 has to put any catch-up contributions into a Roth IRA, and those contributions must be on an after-tax basis. Currently, the limit on Roth IRA catch-up contributions is $1,000.
🤓Nerdy Tip
The income threshold for the high-earner rule coming online in 2026 refers only to FICA wages (i.e., what’s on your W-2). Someone without FICA wages, such as self-employment income, isn’t affected by the new Roth requirement.
Should you make catch-up contributions?
If you’re nearing retirement and want to boost your savings, making catch-up contributions to max out your retirement accounts could be a smart move. If you’re unsure about how much you need for retirement or how to optimize your retirement savings, it could be a good time to talk to a financial advisor.
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