Catch-Up ContributionsCatch-Up Contributions

Catch-up contributions apply to those aged 50 or older. In this article, we will go over how catch-up contributions work and overall contributions limits.

Catch-up Contributions-What Are They?

A catch-up contribution is extra money you can contribute to your retirement account, over the annual contribution limit set by the IRS. You must be 50 or older to take advantage of these contributions. They are set in place to allow you to save additional money as you near retirement. It is especially helpful if you have delayed saving. Catch-up contributions apply to 401ks, 403bs, IRAs, and SIMPLE IRAs.

“Super” Catch-Up Contributions

“Super” catch-up contributions originate from the SECURE 2.0 Act of 2022. Between ages 60 and 63 you are granted an even higher contribution amount. It was designed to help you maximize your savings as you get closer to retirement.

How Catch-Up Contributions Work

To qualify for catch-up contributions, you must meet certain eligibility requirements. You must be at least 50 years of age by December 31st of the year you are wanting to claim the contribution. This contribution can be made on top of an annual contribution, with a limit set by the IRS. Each type of retirement account has its own contribution limit. If you have multiple types of retirement accounts, you could potentially make catch-up contributions to all of them. It is important to note that due to the SECURE Act 2.0, if you make more than $150,000 your contributions must be made on a Roth basis, which is after tax.

Contribution Limits

2026 401k

  • Under 50-$24,500
  • 50-59, 64+-$32,500
  • 60-63-$35,750

2026 IRA

  • Under 50-$7,500
  • 50+-$8,600

2026 SIMPLE IRA

      • Under 50-$17,000
      • 50-59, 64+-$21,000
      • 60-63-$22,250

Utilizing Catch-Up Contributions

As you are planning for retirement, taking advantage of catch-up contributions is vital. As they greatly can help increase your nest egg. Meet with your financial advisor to work these contributions into your retirement plan.

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