A catch-up contribution is additional retirement savings the law allows once you reach 50, on top of the standard limits. For 2026, a 401(k) allows $8,000 extra, raised to $11,250 for people aged 60 through 63. An IRA allows $1,100 extra. HSAs have their own version: $1,000 extra starting at 55. The name says the purpose: giving people in their fifties and sixties a way to make up for years when they saved less.
Put together, someone aged 60 to 63 in 2026 can contribute $24,500 plus $11,250 to a 401(k), or $35,750, plus $8,600 to an IRA. Over the roughly fifteen years from 50 to 65, catch-up contributions alone can add well over $150,000 of savings, more once invested.
Eligibility is by calendar year: if you turn 50 on December 31, you can make the full catch-up for that year. The 60-to-63 window is also by year, so the higher amount applies in the years you are 60, 61, 62, and 63, and drops back to the standard catch-up at 64.
One rule to know: starting in 2026, people who earned more than a set amount of wages the prior year (around $150,000) must make their 401(k) catch-up contributions as Roth, not pre-tax, if the plan offers Roth. If it does not, no catch-up is allowed at all.
The common mistake is assuming payroll will apply the catch-up automatically. Many plans require you to raise your contribution percentage yourself, and stop at the standard limit otherwise.