All About Catch-Up Contributions

Catch-up contributions allow people age 50 or older to save more in their 401(k)s and individual retirement accounts (IRAs) than the usual annual contribution limits set by the IRS. The idea is to make up for the years you didn’t save enough, probably when you were young. The caps for catch-up contributions depend on the kind of retirement account you’re investing in.

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Catch-Up Contribution Amounts and Limits

The IRS sets catch-up contributions for eligible retirement plans each year. Of course, you must first reach your plan’s contribution limit before you can make catch-up contributions. Below, we break down the 2026 individual contribution limits and catch-up contribution amounts for different plans.

IRAs: The contribution limit for Traditional IRAs and Roth IRAs is $7,500 in 2026 (up from $7,000 in 2025). The catch-up contribution is $1,100. So in total, you can contribute $8,600 in 2026 if you are 50 or older (up from $8,000 in 2025).
401(k) and other workplace retirement plans: The annual contribution limit for workplace retirement plans like 401(k)s, 403(b)s, most 457s and the government’s Thrift Savings Plan (TSP) stands at $24,500 in 2026 (up from $23,500 in 2025). The catch-up contribution amount for these plans is currently $8,000. So you can essentially contribute up to $32,500 in 2026 ($31,500 in 2025) if you are 50 or older. However, the catch-up contribution increases to $11,250 for 401(k) participants between 60 and 63 years old.
SIMPLE 401(k): The contribution limit for SIMPLE retirement plan accounts is $17,000 in 2026 (up from $16,500 in 2025). The catch-up contribution amount is $4,000 in 2026 (up from $3,500 in 2025). In total, you can contribute up to $21,000 to a SIMPLE 401(k) in 2026 (up from $20,000 in 2025) if you are older than 50. That catch-up contribution amount increases to $11,250 for those ages 60 to 63.

Regardless of what plan you’re investing in, you don’t have to wait until your 50th birthday to make catch-up contributions. You can begin doing so at any point during the calendar year you turn 50.

Benefits of Catch-Up Contributions

SmartAsset: All About Catch-Up Contributions

As you can see, the catch-up contribution limit is quite generous across different plan types. You can use our 401(k) calculator to see how much you can expect to gain by taking advantage of catch-up contributions.

So let’s say you turn 50 years old in 2026 and you contribute the maximum of $24,500 to your 401(k) but you don’t use your catch-up contribution. Assuming an annual return of 7% on your 401(k) investments, a reasonable estimate according to some advisors, your account would grow to $26,215 by next year.

But by taking the full catch-up contribution, it would grow to $34,775 after just on year. If you do nothing more and let your money grow (at 7%) until you turn 65, you would have close to $90,000.

Do you need help figuring out your required minimum distributions? Try SmartAsset’s RMD calculator to learn more.

In addition, you stand to gain even more if your company offers some type of employer match on your contributions. As noted above, the most you can contribute to your 401(k) if you’re at least 50 years old is $32,500 in 2026. The IRS calls this money that you put into the account “elective deferrals.” They are separate from any employer match your company may offer.

In 2026, the total amount of tax-deferred contributions that can be made to your 401(k) plus all other defined contribution (DC) plans from all sources including your employer is $72,000 or $80,000 if you’re age 50 or older. However, if you’re between ages 60 and 63, your limit is set at $83,250, thanks to the enhanced catch-up contribution.

DC plans typically cover workplace retirement plans. So if you’re 50 or older, the most you can contribute in 2026 to all your IRAs, including any Roth options, is $7,500 ($8,600 if you’re 50 or older).

How to Make Catch-Up Contributions

To begin making these extra contributions, you’ll need to contact your plan administrator or access your account online. You can make this election at any time and change the amount you wish to contribute each pay period if necessary. Catch-up contributions must be made to 401(k) plans before the end of the year.

IRA catch-up contributions, on the other hand, can be made up until the deadline to file your income tax return. This date typically falls in the middle of April in the year following. So for tax year 2026, you will have until April 15, 2027 to make contributions to your account.

Bottom Line

It’s best to take advantage of catch-up contributions and any other opportunities that can boost your retirement savings. You also want to avoid making investing mistakes that can jeopardize the money you’ve put away. As you get older, you’ll generally want to decrease your risk exposure. A financial advisor can help you make the tough switch from accumulating savings to drawing them down.

Tips on Saving for Retirement

Your nest egg will likely grow the most in the stock market. But to mitigate the risk, you’ll want to diversify your investments. If you’re not sure what the right allocation is for you, consult a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Increase your 401(k) contributions as soon as you get a raise. Ideally, you should defer the whole raise until you’ve reached the contribution cap. But any amount is better than nothing. If you do it right away, you won’t miss the added amount withheld from your paycheck.
Do your research to make sure you’re making the best retirement choice for your needs. Here’s a breakdown of IRAs vs. 401(k)s.