Catch-Up Contributions: How to Save More for Retirement Once You Hit 50

The elective deferral limit for employees who participate in 401(k), 403(b), and 457(b) plans is $24,500 for 2026. The catch-up contribution limit for those age 50 or over is $8,000. Participants who are 50 and older can therefore contribute up to $32,500 each year, starting in 2026.

There are no income limits that restrict eligibility for the catch-up itself within a 401(k), as long as you participate in the plan and are at least 50, the additional room is available to you. However, a significant rule change took effect in 2026 regarding how high earners must make those contributions (see below).

Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees who turn 60, 61, 62, and 63 in a calendar year. For 2026, this higher catch-up contribution limit is $11,250 (instead of $8,000). That brings the total contribution potential to $35,750 for those in this age band. Whether this higher limit is available to you depends on whether your employer's plan has adopted the provision. It is worth confirming with your plan administrator.

The moment you turn 64, the super catch-up disappears and you drop back to the standard $8,000 catch-up. This is a narrow, four-year window, so savers in their late 50s may want to be aware of this window.

It is also worth noting that the super catch-up replaces the standard catch-up rather than adding to it.

Beginning in 2026, if your wages from your employer were more than $150,000 in 2025, any catch-up contribution you make to that employer's 401(k) must be a Roth (after-tax) contribution. This rule applies to employer-sponsored plans broadly, including 403(b) and governmental 457(b) plans.

Those making $150,000 or less in the prior year can continue making catch-up contributions to their regular pre-tax and/or Roth accounts. 

For those above the threshold, the ability to comply with the mandatory Roth requirement depends on whether your employer's plan offers a Roth account. Those whose plans do not may wish to speak with a qualified professional about their options. IRAs are not currently impacted by this rule.

This means that if you are a higher earner, your catch-up contributions will no longer reduce your taxable income in the year they are made, but qualified withdrawals from Roth accounts in retirement will generally be tax-free. It is a meaningful change worth discussing with an advisor before assuming your contribution strategy from prior years still applies.

The 2026 contribution limit for IRAs is $7,500. If you are 50 years old or older, you can make an additional contribution of $1,100, bringing your total annual contribution to $8,600. This is the first time the IRA catch-up has increased in years, thanks to a SECURE 2.0 indexing provision that tied it to inflation.

When it comes to traditional IRAs, there are no income limitations on making a contribution. Generally, anyone with earned income can open and contribute to an IRA. However, whether that contribution is deductible on your tax return is a different question.

For single individuals covered by an employer retirement plan, the deduction phase-out range for 2026 is $81,000 to $91,000. For married couples filing jointly, if the spouse making the IRA contribution is covered by an employer retirement plan, the phase-out range is $129,000 to $149,000.

Catch-up contributions to an IRA are due by the due date of your tax return, not including extensions, which for most filers means April 15th of the following year. This gives IRA savers additional flexibility compared to employer-sponsored plans.

The Roth IRA is subject to income limits that affect your ability to contribute directly. The phase-out range for savers making contributions to a Roth IRA is $153,000 to $168,000 for single filers, and $242,000 to $252,000 for those who are married filing jointly. Above those upper thresholds, direct Roth IRA contributions are no longer permitted. Individuals above those thresholds may have other options worth discussing with a qualified tax professional.

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most SIMPLE plans is $4,000 for 2026, up from $3,500 in 2025. Salary reduction contributions in a SIMPLE IRA plan are not treated as catch-up contributions until they exceed $17,000 in 2026. That brings the total potential contribution to $21,000 for those 50 and older.

Under SECURE 2.0, a higher catch-up contribution limit applies for employees who turn 60, 61, 62, and 63 in a calendar year in SIMPLE plans. For 2026, this higher catch-up contribution limit is $5,250 (instead of $4,000).

As with other employer plans, the age 60-63 super catch-up replaces the standard catch-up rather than adding to it

SECURE 2.0 created a second tier called an "applicable" SIMPLE plan, which carries higher deferral limits for businesses with no more than 25 employees who each earned at least $5,000 in the prior year. For those employees, the annual contribution limit increases to $18,100, while the catch-up limit for those age 50 and older is $3,850, and $5,250 for those ages 60 to 63.

One detail worth knowing: these enhanced limits are not optional. When an employer qualifies under the 25-or-fewer threshold, the higher limits apply automatically. However, there is an important note for small business owners: employers should confirm their plan documents reflect this and that required participant notices have been issued.

For employers with 26 to 100 employees, these same higher limits may be available if the employer provides either a 4% matching contribution or a 3% nonelective employer contribution. If you are unsure whether your plan qualifies, your plan administrator can confirm.