Catch-Up Contribution
A catch-up contribution is an additional amount workers aged 50 and older can contribute to retirement accounts above the standard limit. The IRS allows this to help older workers accelerate retirement savings as they approach retirement age.
Worker age 55 can contribute $23,500 + $7,500 = $31,000 to a 401(k) in 2025.
For 2025, the catch-up contribution rules are: 401(k)/403(b)/457: $7,500 additional (total limit $31,000); IRA/Roth IRA: $1,000 additional (total limit $8,000); SIMPLE IRA: $3,500 additional.
Under SECURE Act 2.0, workers aged 60–63 can make a higher 401(k) catch-up contribution of $11,250 starting in 2025 — triple the regular catch-up amount. This "super catch-up" is a significant savings opportunity for late starters.
If you are 50 or older and have extra cash flow (from paying off a mortgage, lower college costs, or a higher salary), maximising catch-up contributions is one of the highest-ROI financial moves available — the tax deduction is worth real money at peak earning years.
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Open calculator →Related terms
- 401(k)
- A 401(k) is a US employer-sponsored retirement savings account. Contributions are pre-tax (traditional) or post-tax (Roth), grow tax-deferred or tax-free, and benefit from compound growth over decades.
- Traditional IRA
- A traditional IRA (Individual Retirement Account) is a tax-deferred retirement account. Contributions may be tax-deductible (depending on income and whether you have a workplace plan), and withdrawals in retirement are taxed as ordinary income.
- Roth IRA
- A Roth IRA is a US individual retirement account funded with after-tax dollars. Investments grow tax-free, and qualified withdrawals in retirement are completely tax-free.
- Compound Interest
- Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It causes savings and investments to grow exponentially over time.