Catch-up contributions: How to boost your retirement savings

Building your retirement savings is one thing. Converting that money into retirement income that lasts a lifetime is another.

Catch-up contributions offer a unique opportunity to boost your retirement savings before it’s too late. With this strategy, you can work toward filling budget gaps, securing a nest egg for loved ones or creating a lasting impact by supporting causes that matter most to you.

And starting in 2026, a new rule changes how some higher-income savers make those contributions. Here’s what you need to know.

A catch-up contribution allows you to add additional dollars beyond the annual contribution limit of your retirement plan.

You’re eligible to make catch-up contributions if you meet the following criteria:

• You are at least 50 years old or will be before the end of the year
• You participate in a retirement plan that allows catch-up contributions: 401(k), 403(b), IRAs, etc.
• You’ve already met your regular contribution limit for the year (see the chart below)

These contributions offer two major benefits: lowering your taxable income and increasing your principal investment.

Contributions to traditional retirement accounts, like a 401(k), 403(b) or traditional IRA, are made with pre-tax dollars. Increasing your contributions decreases your taxable income.¹ Note that contributions to Roth accounts, such as Roth IRAs, are the exception to this rule because they are made with after-tax dollars. Additionally, if your income is too high or you participate in an employer plan, you may not qualify to made a deductible IRA contribution.

You’re not guaranteed to make money when investing in the market. But by regularly investing and letting the money sit untouched over the long term, you can give it a greater chance to appreciate with compound interest.

The contribution limits and catch-up contribution maximums vary greatly by the type of plan. You can find the details applicable to your retirement plan below:

Starting Jan. 1, 2026, if you earned more than $150,000 in wages from your employer in 2025, any catch-up contributions you make to a 401(k), 403(b) or 457(b) plan must go into a Roth account, meaning after-tax dollars, rather than pre-tax.

A few things to note:

• This applies only to catch-up dollars. Your regular contributions below the standard annual limit aren’t affected.
• It doesn’t apply to IRA catch-up contributions; those still can be made on a traditional or Roth basis regardless of income.
• The $150,000 threshold is based on wages from the specific employer sponsoring your plan, not your total household income.
• If your plan doesn’t currently offer a Roth option, talk to your plan administrator. Many employers are adding one to comply with this rule.

If you’re not sure whether this applies to you, your plan administrator can confirm based on your 2025 wages.

As of Jan. 1, 2025, the SECURE Act 2.0 introduced higher catch-up contribution limits for those aged 60, 61, 62 and 63. During these key years, you can contribute up to $11,250 to your 401(k), 403(b) or 457(b)—the same amount as 2025, even though the standard catch-up limit for everyone 50 and older rose to $8,000 in 2026.

SIMPLE IRAs have a special catch-up, as well. For 2026, the SIMPLE IRA contribution limit is set at $17,000. However, if you’re between 60 and 63, you can boost your savings even more with a $5,250 catch-up contribution in 2026.

What’s more, this enhanced contribution limit will be adjusted annually for inflation, helping you save even more as you approach retirement. It’s a golden opportunity to boost your savings when it matters most.

Some employers match all or a portion of your retirement contribution up to a limit. But it’s unlikely that catch-up contributions will qualify. If your employer matches up to 6% of your compensation, for example, contributions above that 6% (which is often where catch-up dollars land) typically go unmatched. Check your plan details to confirm what your employer will match.

Catching up on retirement savings is helpful for anyone 50 or older looking to boost their retirement income. Even so, it may not be worth it for everyone. After all, maxing out your retirement savings above the annual limit can be a big ask, especially amid high inflation. Yet increased costs and uncertainty are good reasons to make sure you have what you need in retirement.

If you’re wondering whether catching up is a good idea, start by reviewing how you’re tracking toward your retirement goals. A retirement calculator can be a very effective tool for seeing where you stand.

Maybe you didn’t save as much as you wanted when you were younger, or you were hit with some unexpected, large expenses. Situations like these can thwart even the best financial strategies. Contributing additional dollars could help close the gap between your income and your retirement needs.

Even if your financial journey has been smooth and you’re right where you want to be, taking advantage of the catch-up limit can move the needle. It can allow you to leave more for your loved ones, for instance, or have some to give back to the charities and organizations that keep your community strong.

Making these types of contributions can be straightforward as long as you keep the following considerations in mind:

1. Know your plan’s provisions. If you’re turning 50 by the end of the year, the first step is making sure your retirement plan has a catch-up program and that you understand the stipulations. If you earned over $150,000 from your employer last year, confirm with your plan administrator whether the new Roth catch-up rule applies to you. Some plans have limits that differ from IRS rules, so do your due diligence before increasing your contribution.
2. Calculate your catch-up amount. Setting up a catch-up contribution is as simple as increasing the amount you defer to your retirement savings, but you’ll want to be intentional with your increase. Make sure your added contribution is enough to help you reach your goals.
3. Adjust your budget. Whether money is tight or you have a little breathing room each month, know how your updated contributions will affect your budget. You may need to adjust and realign your spending and saving so you can reach your unique financial goals.
4. Make the changes. Many plans allow you to increase your contributions online, or you can contact your plan administrator. Employer-sponsored plans may require you to make your changes before the end of the year. The deadline for updating IRAs is before your next income tax return.
5. Review your contributions regularly. At the end of the year, the administrator will look at your total contributions and notify you of any amount above the annual limit as a catch-up contribution. They can work with you to have the excess contributions, plus any accrued earnings, withdrawn.