Once you turn 50, the IRS lets you put extra money into most retirement accounts each year. These extra amounts are called catch-up contributions. They are one of the simplest ways to boost your savings in the last 10 to 15 years before retirement.
Key points (2026 limits)
- 401(k), 403(b) and most 457 plans: $24,500 regular limit, plus $8,000 catch-up at age 50 or older, for a total of $32,500.
- Ages 60 to 63: a larger catch-up of $11,250 instead of $8,000, for a total of $35,750.
- IRA: $7,500 regular limit, plus $1,100 catch-up at age 50 or older, for a total of $8,600.
- HSA: an extra $1,000 a year from age 55, if you have an eligible high-deductible health plan.
These are the official limits for 2026. The IRS usually announces the next year's limits in the fall. We will update this guide when the 2027 limits are published.
2026 limits at a glance
| Account | Regular limit | Catch-up | Total |
|---|---|---|---|
| 401(k), 403(b), most 457 plans (age 50 to 59, or 64 and older) | $24,500 | $8,000 | $32,500 |
| 401(k), 403(b), most 457 plans (age 60, 61, 62 or 63 during the year) | $24,500 | $11,250 | $35,750 |
| Traditional or Roth IRA (age 50 or older) | $7,500 | $1,100 | $8,600 |
| Health Savings Account (age 55 or older) | Depends on coverage | $1,000 | Varies |
SIMPLE IRA and SIMPLE 401(k) plans have their own, lower limits. Check with your plan administrator if you have one.
How much difference it can make
Here is a simple example, before any investment growth or taxes:
- Adding the $8,000 catch-up every year from age 52 to 61 adds $80,000 of extra savings.
- An extra $1,100 a year to an IRA over the same 10 years adds $11,000.
Any investment growth comes on top of that, but it is never guaranteed. Investments can also lose value.
The new Roth rule for higher earners
Starting in 2026, if you earned more than $150,000 in wages from your employer in the previous year, your workplace catch-up contributions must go in as Roth (after-tax) contributions. Your regular contributions up to $24,500 are not affected. If your plan has no Roth option, ask your employer how it will handle catch-ups. Below the threshold, you can usually choose pre-tax or Roth, if your plan offers both.
Traditional or Roth: the short version
| Traditional (pre-tax) | Roth (after-tax) | |
|---|---|---|
| Tax break | Now: lowers this year's taxable income | Later: qualified withdrawals are tax-free |
| Withdrawals in retirement | Taxed as income | Tax-free if the rules are met |
| Often a good fit if | You expect a lower tax rate in retirement | You expect the same or a higher tax rate later |
Other ways to save more after 50
- Get the full employer match. If your employer matches contributions, contribute at least enough to get all of it.
- Turn on automatic increases. Many plans can raise your contribution by 1% a year.
- Save raises and bonuses. Put part of every raise into savings before you get used to spending it.
- Spousal IRA. A spouse with little or no income can still contribute to an IRA, based on the working spouse's income, if you file taxes jointly.
- Pay off high-interest debt. Paying off a credit card charging 20% or more is a guaranteed "return" that investments rarely beat.
Not sure what fits you? Your plan administrator can tell you what your plan allows. For personal advice, consider a fee-only financial planner who acts as a fiduciary, meaning they must put your interests first.
Sources
Educational information only. This guide is not financial, legal, tax or medical advice. GrandsGaro is a private website and is not affiliated with the Social Security Administration, Medicare, the Centers for Medicare & Medicaid Services, the IRS or any government agency. For decisions about your own benefits, check the official sources linked on this page.