Your last working years can be among your best for saving. Children may be grown, a mortgage may be paid off and your earnings may be at their peak. Federal rules let people 50 and older put extra money into retirement accounts through catch-up contributions.
2026 contribution limits
| Account | Regular limit | Catch-up, age 50+ | Total for age 50+ |
|---|---|---|---|
| 401(k), 403(b), most 457 plans, Thrift Savings Plan | $24,500 | $8,000 | $32,500 |
| Same plans, ages 60 to 63 | $24,500 | up to $11,250 | up to $35,750 |
| Traditional or Roth IRA | $7,500 | $1,100 | $8,600 |
| SIMPLE IRA or SIMPLE 401(k) | $17,000 | $4,000 | $21,000 |
Limits for 2027 are usually announced in the fall.
The higher catch-up for ages 60 to 63
Since 2025, workers who are 60, 61, 62 or 63 at the end of the year can make a larger catch-up contribution to employer plans, up to $11,250 in 2026 for 401(k)-type plans. Not every plan offers it, so ask your employer. At 64, the regular age-50 catch-up limit applies again.
The new Roth rule for higher earners
Starting in 2026, if you earned more than $150,000 in Social Security wages from your employer in the previous year, any catch-up contributions to that employer's plan must be made as Roth contributions. You pay tax on the money now, but qualified withdrawals later are tax-free. If your plan does not offer a Roth option, you may not be able to make catch-up contributions at all. This rule does not apply to IRAs.
Is it worth it?
Catch-up contributions can help if you started saving late, took time out of work or want a bigger cushion. Consider:
- Your budget. Do not contribute so much that you rely on credit cards for everyday costs.
- Your employer match. At the very least, contribute enough to get any matching contributions.
- Taxes. Traditional contributions lower your taxable income now. Roth contributions do not, but withdrawals can be tax-free later. The best mix depends on your current and expected future tax rates.
- Debt. Paying off high-interest debt may come first.
Health savings accounts
If you have a high-deductible health plan and are not yet on Medicare, you can contribute to a health savings account: up to $4,400 for self-only coverage or $8,750 for family coverage in 2026, plus a $1,000 catch-up if you are 55 or older. You must stop HSA contributions once you have any part of Medicare. See when to sign up for Medicare.
Get help
Your plan's administrator can explain your options. A fee-only financial planner can help you decide how much to save and in which accounts. Later, required minimum distributions will apply to most traditional accounts. See required minimum distributions: the basics.
