Taking advantage of catch-up contributions

Diligently saving throughout your life is one of the best ways to achieve financial security in retirement, no matter how long it lasts. Investing part of your paycheck early in your career can help you slowly build up your assets and take advantage of potential long-term growth in the market.

However, if expenses like paying off student loans or raising a family held your savings back during the first phase of your career, you’re not alone. Taking advantage of catch-up contributions can help you build your retirement accounts during your 50s and beyond, so you can get back on track.

What is a catch-up contribution?

Catch-up contributions are increased limits on retirement accounts for individuals ages 50 and older. The IRS has separate catch-up provisions that apply to both employer sponsored plans – including 401(k)s and 403(b)s – as well as individual retirement accounts (IRAs).

The higher contribution allowance enables you to build up your tax-advantaged accounts more rapidly in the latter stages of your career. The ability to boost your contributions as you get older can be particularly helpful if, for any reason, you weren’t able to save as much as you had hoped in previous years.

A separate catch-up provision applies to health savings accounts (HSAs), which allows you to make contributions if you have a high-deductible health plan. Starting in the year you reach 55, you can use the catch-up feature to increase your annual contributions. Because healthcare expenses can increase substantially when you get older, HSA assets can play an important role in maintaining your financial wellbeing in retirement. 

2026 catch up contribution limits for 401(k)s, IRAs and HSAs

The IRS periodically adjusts both the standard contribution limit and catch-up limit for qualified retirement accounts and HSAs. The 2026 catch-up contribution limits for individuals age 50-59 or 64 and older are:

• 401(k) and 403(b) catch up limits: $8,000 for employer-sponsored plans like a 401(k) or 403(b). The standard contribution limit in 2026 is $24,500, for a total contribution limit of $32,500.
• SIMPLE IRA catch up limits: $4,000 for SIMPLE IRAs. The standard contribution limit in 2026 is $17,000 for a total contribution limit of $21,000.

The 2026 catch-up contribution limits for all individuals age 50 and older are:

• IRA catch up limits: $1,100 for traditional and Roth IRAs. The standard contribution limit in 2026 is $7,500, for a total contribution limit of $8,600.
• HSA catch up limits: $1,000 for health savings accounts (HSAs) per account holder. The standard contribution limit is $4,400 for individual coverage and $8,750 for family coverage, for a total contribution limit of $5,400 for individual coverage and $9,750 for family coverage.

The increased limit applies to your total contributions for each account category. Suppose, for example, that you’re age 50 or older and contribute $5,500 to a traditional (pre-tax) IRA in the 2026 tax year. With the catch-up contribution, you can put an additional $3,100 into a separate IRA – whether it’s a traditional or Roth account – for a total IRA contribution of $8,600 for the year. 

When can I make a catch-up contribution?

You can make catch-up contributions to a 401(k) or other qualified employer sponsored plan any time during the calendar year. In most cases, you’ll have to log into your account through the plan administrator’s website to adjust your deferral. If you’re age 50 or older, the site should automatically enable you to make contributions up to the annual catch-up limit.

If you have an IRA, however, you can make catch-up contributions up until the tax filing deadline. In most years, that means you have until April 15 to put money into your IRA and have it count toward the previous year’s allowance.

How does the SECURE 2.0 Act affect catch-up contributions?

The SECURE 2.0 Act, which was passed in 2022, includes several changes aimed at helping Americans save for retirement. The legislation includes a few key provisions that affect catch-up contributions.

Traditional and Roth IRA catch-up contribution increase.

Beginning in 2024, the $1,000 limit on catch-up contributions to a traditional and Roth IRA may be indexed for inflation, potentially increasing this amount going forward. As stated above, the catch-up limit in 2026 is $1,100.

401(k) and SIMPLE IRA catch-up contribution increase for people aged 60-63.

Beginning in 2025, catch-up contributions increase for individuals between the ages of 60 and 63. These limits are often referred to as “super catch-up” contributions. The maximum additional catch-up contributions for 2026 to a 401(k) and 403(b) remains $11,250. For SIMPLE IRAs, the catch-up contribution limit remains $5,250 in 2026. These amounts may be adjusted annually for inflation.

Roth catch-up contributions for high earners (starting in 2026).

Beginning in 2026, employees aged 50 or older who earn more than $145,000 in FICA wages annually will have to make catch-up contributions on an after-tax basis into a Roth account within their employer’s plan. If your employer’s retirement plan does not offer a Roth option, you will not be able to make catch-up contributions.

Employees earning less than $145,000 can continue making catch-up contributions on either a pre-tax or Roth basis, depending on their plan options. The income threshold for this requirement may be adjusted for inflation in subsequent years.

Check with your plan administrator for details on your plan options and eligibility. Also note that this is separate from voluntary after-tax 401(k) contributions that some plans offer. 

Are you ready to maximize your retirement savings?

If it turns out that your retirement fund is below what you anticipate needing in retirement, taking advantage of catch-up contributions can be a big boost to your savings. As you get closer to retirement, a financial professional can help you review or update your investment strategy to ensure that you’re ready for this exciting next stage of life.

Learn how we can help you plan for retirement.