Understanding Catch-up Contributions for Retirement Plans

It’s never too late to start saving for retirement. If you’re age 50 or older, the IRS allows you to make catch-up contributions, giving you the opportunity to go beyond the standard annual contribution limits for certain retirement accounts.

For 2026, you can contribute an additional $8,000 to qualified retirement plans, including:

• 401(k) plans, other than SIMPLE 401(k) plans
• 403(b) plans
• SARSEP plans
• Governmental 457(b) plans
• The federal government’s Thrift Savings Plan

This means your total employee contribution limit increases to:

• 2024: $23,000 + $7,500 = $30,500
• 2025: $23,500 + $7,500 = $31,000
• 2026: $24,500 + $8,000 = $32,500

Note: If you’re age 60 to 63 in 2026 and your plan allows, you’re eligible for a special “super” catch-up limit of $11,250 instead of the standard catch-up, raising your total to $35,750.

A newer rule specifically affects high earners starting in 2026: if you earned more than $150,000 in Social Security wages the prior year, the IRS now requires your catch-up contributions to be made on a Roth basis, under final SECURE 2.0 regulations issued in September 2025. If your plan doesn’t offer a Roth option, high earners generally can’t make catch-up contributions at all under this rule.

For IRAs

The standard IRA contribution limit was $7,000 for 2024 and 2025, rising to $7,500 for 2026. If you’re age 50 or older, you can contribute an extra catch-up amount, bringing your total to:

• 2024 and 2025: $8,000 for both Traditional and Roth IRAs (a $1,000 catch-up)
• 2026: $8,600 for both Traditional and Roth IRAs (a $1,100 catch-up)

To qualify for catch-up contributions in any tax year, you must turn 50 by December 31 of that year.

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Here’s how those catch-up amounts break down by plan type and year.

401(k), 403(b), SARSEP, and 457(b) plans

For those with employer-sponsored retirement plans, here’s how the contribution limits break down:

• 2024: Standard limit is $23,000

  • Catch-up contribution of $7,500
    = Total: $30,500 for individuals age 50+

• 2025: Standard limit is $23,500

  • Catch-up contribution of $7,500
    = Total: $31,000 for individuals age 50+

• 2026: Standard limit is $24,500

  • Catch-up contribution of $8,000
    = Total: $32,500 for individuals age 50+
  • Or, for individuals age 60-63: a “super” catch-up of $11,250 instead
    = Total: $35,750

Why it matters

Maximizing these contributions is a smart financial move:

• If your employer offers matching contributions, you’re earning free money on top of your savings.
• Even if there’s no match, contributing pre-tax reduces your taxable income for the year, offering valuable tax savings.
• The additional time your money spends invested helps maximize compound growth.

If you’re looking to aggressively save for retirement in your 50s, catch-up contributions are a crucial tool. Strategize and ensure you’re saving the most you possibly can.

Roth vs. Traditional Retirement Plans

Consider your current and future tax situations when choosing between Roth and traditional retirement plans. Roth plans require you to pay taxes upfront, but withdrawals in retirement are tax-free. This can benefit you if you expect a higher tax bracket. Traditional plans offer tax-deferred growth, with taxes paid upon withdrawal, which might be advantageous if you anticipate being in a lower tax bracket after retiring.

If you already participate in a traditional TSP or another plan, you can direct future contributions to a Roth option, but you cannot convert existing contributions to Roth status. This strategic choice significantly affects your overall retirement planning, especially when considering tax diversification.

Contribution Limits for 2024, 2025 & 2026

Each year, the IRS sets contribution limits for retirement plans such as 401(k), 403(b), SARSEP, and governmental 457(b) plans. Here are the limits for 2024 through 2026:

2024 Contribution Limits

• Employee Contribution Limit: Up to $23,000
• Total Contribution Limit (employee + employer): Up to $69,000
• Catch-Up Contribution (age 50+): Additional $7,500
  → Total with catch-up: $30,500

2025 Contribution Limits

• Employee Contribution Limit: Up to $23,500
• Total Contribution Limit (employee + employer): Up to $70,000
• Catch-Up Contribution (age 50+): Additional $7,500
  → Total with catch-up: $31,000

2026 Contribution Limits

• Employee Contribution Limit: Up to $24,500
• Total Contribution Limit (employee + employer): Up to $72,000
• Catch-Up Contribution (age 50+): Additional $8,000
  → Total with catch-up: $32,500
• Super Catch-Up (ages 60-63): $11,250 instead of the standard catch-up
  → Total with super catch-up: $35,750

These limits also apply to uniformed servicemembers, and contributions from tax-free combat pay still don’t count toward them, so servicemembers in combat zones can maximize their retirement savings even further.

Phase-Out Ranges for 2024, 2025 & 2026

The IRS adjusts income thresholds each year to determine eligibility for deductible Traditional IRA contributions, Roth IRA contributions, and the Saver’s Credit. Here are the updated phase-out ranges for 2024 through 2026:

Traditional IRA Deduction Phase-Out (for those covered by a workplace retirement plan)

Filing Status	2024 MAGI Range	2025 MAGI Range	2026 MAGI Range
Single or Head of Household	$77,000 – $87,000	$79,000 – $89,000	$81,000 – $91,000
Married Filing Jointly	$123,000 – $143,000	$126,000 – $146,000	$129,000 – $149,000
Married Filing Jointly (contributor not covered, spouse is)	$230,000 – $240,000	$236,000 – $246,000	$242,000 – $252,000
Married Filing Separately	$0 – $10,000	$0 – $10,000	$0 – $10,000

Roth IRA Contribution Phase-Out

Filing Status	2024 MAGI Range	2025 MAGI Range	2026 MAGI Range
Single or Head of Household	$146,000 – $161,000	$150,000 – $165,000	$153,000 – $168,000
Married Filing Jointly	$230,000 – $240,000	$236,000 – $246,000	$242,000 – $252,000
Married Filing Separately	$0 – $10,000	$0 – $10,000	$0 – $10,000

These limits determine how much you can contribute, or whether you can contribute at all, based on your income and filing status.

Bottom line

Even if you can’t max out your retirement contributions, aim to save as much as possible. If you’re over 50, take advantage of catch-up contributions to boost your savings. Consult with a Certified Financial Planner® to optimize your retirement strategy and ensure you maximize your savings opportunities.