Catch-up Contributions: Increasing Your Limits After Age 50

Most people don’t have enough saved for retirement, especially those closer to retirement age. According to Fidelity, the average 401(k) balance for folks 50-54 is $199,900. 

It’s not easy for many folks to prepare for life after work. Fidelity says by age 50, you should have at least six times your salary saved for retirement. The median annual salary for 55- to 64-year-olds is $71,604, so six times that is $429,624 — twice the average 401(k) balance.

If you’re behind on saving for retirement and you’re closer to it than you realized, there’s good news. Those aged 50 and older can take advantage of catch-up contributions or make extra retirement contributions. WorkMoney has your guide for how to take advantage of catch-up contributions, whether you’re eligible right now or still a few years away.

What Are Catch-up Contributions?

Catch-up contributions are extra retirement account contributions available only to those 50 and older, in addition to the standard annual limit.

Catch-up limits depend on your plan, and not all plans qualify. You can make catch-up contributions to:

• 401(k)

• 403(b)

• Governmental 457

• Thrift Savings Plan (TSP)

• Traditional IRA

• Roth IRA

• SIMPLE plans

What Catch-up Contributions Look Like by Age

While you can start making catch-up contributions at age 50, there are some different milestones you’ll hit as you get older.

Super catch-up contributions are extra-large contributions you can make between 60 and 63. While you can start making an additional $8,000 in catch-up contributions at age 50, super catch-up contributions let you add a total of $11,250—an extra $3,250 per year, or $9,750 during those years. Once you turn 64, the super catch-up window closes, and you revert to the standard limit.

New Roth Rules for High Earners

After the SECURE Act passed in 2022, high earners have a new way to make catch-up contributions. Starting in 2026, those age 50 and older earning $150,000 or more in taxable income can only make catch-up contributions to a Roth 401(k)—not a Traditional 401(k)—with after-tax dollars.

If your plan doesn’t offer a Roth 401(k) option, you won’t be able to make catch-up contributions, meaning you could lose out on making catch-up contributions. If you made less than $150,000 in taxable earnings, you don’t need to worry about getting a Roth 401(k) to maximize your catch-up contributions.

Take Advantage of the Saver’s Credit

The Saver’s Credit is a tax credit of up to 50% of your contributions — including catch-up contributions — maxing out at $1,000 ($2,000 if married filing jointly). 

If you’re 18 years of age or older, not a student, and aren’t claimed as a dependent on someone else’s tax returns, you’re eligible for the Saver’s Credit. How much you qualify for in credits depends on your adjusted gross income (AGI). In 2026, single taxpayers contributing to a work-sponsored retirement plan are fully covered if they make less than $40,250 a year, and married taxpayers filing jointly are fully covered if they make less than $81,500 a year. Deduction amounts start to drop as you earn more. 

Let’s say you earn $40,000 a year and contribute $2,000 to your Traditional IRA. Because you earn below the maximum threshold, you can earn $1,000 from the Saver’s Credit.

How to Start Making Catch-up Contributions

If you’re old enough to start making catch-up contributions to your 401(k), 403(b), or Thrift Savings Plan (TSP), your first move should be to your human resources administrator to see if your plan allows them. 

If you make over the maximum adjusted gross income, ask if a Roth plan is available to you. If you’re 60-63 years of age, ask about the “super catch-up” option. Update your contribution — either a percentage or flat dollar amount — through your employee benefits or payroll system. 

If you have an IRA, log in to your account and set up recurring contributions for the maximum amount you can until the end of the year. IRA catch-up contributions don’t face the same Roth-only rule for high earners — this only applies to workplace plans. Set up recurring contributions for the year so money goes into the account without any fuss. 

What to Do If You Can’t Max Out Contributions

If you can’t max out your plan or you don’t have additional plan benefits for catch-up contributions, you can still make changes in other ways.

Any little bit helps, which means if you can put an additional $25 to your plan every month or even every few months, that’s better than nothing at all. Try to re-work your budget to make room for extra contributions. Say you add $10 more a month to your contributions. That’s an extra $120 a year that’s going towards your retirement fund. 

The Bottom Line

Turbo-boosting retirement savings with catch-up contributions doesn’t just grow your balance for the long-term — it gives your future self the chance to worry less about money in your golden years. The more you can contribute now, the better off you’ll be when you hit retirement age.