A 401(k) is one of the best ways to save for retirement. Unlike an individual retirement account, a 401(k) allows your employer to match some or all of your contributions. And contribution limits, including limits on catch-up contributions, are much higher than limits for IRAs.[irs]
Here’s everything you need to know about catch-up contributions at age 50 and beyond.
What Is a Catch-Up Contribution?
The IRS limits how much you and your employer can contribute to your 401(k). In 2025, you can contribute up to $23,500, and you can have combined total of $70,000 in contributions between your own contributions and your employer’s.[fidelity]
The IRS helps workers nearing retirement boost their savings with additional, catch-up contributions. If you got a late start in saving for retirement, or you simply want to accelerate your savings, catch-up contributions are an excellent, tax-advantaged way to do it.
Who Is Allowed To Make Catch-Up Contributions?
Workers ages 50 and older are allowed to make catch-up contributions. In 2025, the law allows expanded catch-up contributions for workers ages 60 to 63, but not all plans allow it.
What Are the Catch-Up Contribution Limits?
In 2025, you can contribute an additional $7,500 if you’re age 50 or older. That gives you a total contribution limit of $31,000.
Workers ages 60 to 63 have a catch-up contribution limit of $11,250, bringing their total maximum contribution to $34,750.
What If I Have 401(k) Accounts With Two Different Employers?
Limits on 401(k) contributions are per person, not per employer, so having accounts from more than one employer has no effect on your contribution limits. You can divide your savings between the accounts however you wish, within those limits.
Are There Income Limits on How Much I Can Contribute From Pre-Tax Pay?
No, not for a traditional 401(k). You can make contributions from pre-tax pay right up to contribution limits, no matter how much you earn.[irs]
How Will Catch-Up Contributions Change in 2026?
The SECURE 2.0 Act of 2022 implemented many changes affecting retirement accounts, including the expanded catch-up contribution limit for people ages 60 to 63. Additional changes affecting catch-up contributions go into effect next year.[irs]
Beginning in January 2026, the IRS will limit pre-tax 401(k) catch-up contributions to people making $145,000 per year or less. Anyone earning more than $145,000 will have to make their catch-up contributions to a Roth 401(k) account.[fidelity]
Although you contribute after-tax dollars to a Roth 401(k), you still get a tax break on catch-up contributions if you earn more than $145,000. Instead of deducting the catch-up contributions in the year you make them, the money will grow tax-free and provide tax-free income in retirement.
What If I Contribute More Than the Limit to My 401(k)?
Contributions that fall above the IRS limits are called excess deferrals. The IRS penalizes excess deferrals by taxing them twice – once in the year you make them, and once in the year you receive the money as a distribution from the account.
The IRS waives the penalty if you return the money with any gains it earned before the next tax day. Your employer will assist you with this.[irs]
How Should I Save for Retirement After I’ve Maxed Out My 401(k)?
You have several options for retirement savings after you’ve contributed the limit to your 401(k).[ramsey]
- Health savings account, if you’re enrolled in an eligible high-deductible health plan
- Traditional or Roth IRA
- Regular brokerage account
- Real estate or other alternative investment asset
- Annuity
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