A catch-up contribution is designed to help individuals who are closer to retirement age save more for tomorrow in tax advantaged accounts like a 401(k) or IRA. Many people get started saving a little late for retirement, and a catch-up contribution can help build a bigger nest egg. For both a 401(k) or an IRA, a catch-up contribution allows those 50 years old and older to make additional contributions to their retirement account.
With recent legislation like the Secure Act 2.0, the amounts and ways people can contribute are evolving. There is now a super catch-up in 401(k)s, and 2025 is the last year those making over $145,000 can make catch-up contributions tax-deferred in either their 401(k) or IRA.
What is a contribution limit?
Contribution limits are set by the IRS to cap how much employees and employers are allowed to put into tax advantaged retirement accounts. These limits are set to account for inflation, cost of living, and other factors.
Retirement catch-up contributions help those ages 50+ set aside more money for their retirement. With many Americans earning high incomes as they age, it’s a feature more can take advantage of to be in a better place financially when they retire.
What is the new “super” catch-up contribution?
As of 2025, individuals using a 401(k) have the option to contribute an even higher amount of money to their retirement account. To qualify, they must be ages 60-63. Once they turn 64, they must revert back to the standard catch-up contribution limit amount.
How much can I contribute to my 401(k) as an employee in 2025?
The above flowchart helps you identify how much you can contribute to a 401(k) retirement account as an employee in 2025. If you are not yet 50, then you have to follow the standard employee contribution limit of $23,500. If you are over age 50, then your additional contribution limit amount is $7,500, for a total of $31,000.
However, if you are ages 60-63, you qualify for the super catch-up, and your catch-up contribution limit rises to $11,250, for a total of $34,750. The catch-up contribution limit reverts back to $7,500 for those ages 64+.
If you don’t have access to a 401(k) and are using an IRA, the IRA catch-up contribution is up to $1,000 and there is no super catch-up in IRA. Your earnings will dictate how much you may contribute to an IRA. See the chart and footnote below for the details.
401(k) Saving Advantages Over Traditional IRAs Are Significant
The tax advantages for 401(k) savers versus those opting to use IRAs, or those who don't have access to a 401(k) plan, is now even larger.
| 401(k) vs Traditional IRAs in 2025 | ||
|---|---|---|
| 401(k) | IRA | |
| Annual limit per individual | $70,000 (employee + employer contributions) |
$7,000 |
| Age 50+ catch-up amount | $7,500 | $1,000 |
| Age 60-63 catch-up amount | $11,250 | N/A |
| Roth income limit | None | $165K* |
| Penalty-free access, if needed | Yes, via a loan** | No |
*Beginning at $150K, the amount you are allowed to contribute begins to decrease, hitting $0 at $165K for singles (range is $236K to $246K for married couples filing jointly)
**Loan balances must be paid off in five years and if you leave your job, you may be required to pay back the full balance within a short-time frame or pay penalties and taxes. Most important, borrowing from your 401(k) can significantly reduce your retirement savings.
What is the difference between a Roth 401(k) and a traditional 401(k)?
| Roth 401k | Traditional 401k (tax-deferred) | |
|---|---|---|
| Contribution Tax Treatment | You contribute after-taxes; there is no tax benefit in the current year. | You contribute before tax which lowers your current adjusted gross income. You’ll have more take home pay in the current tax year than if you made all Roth 401k contributions. |
| Withdrawal Tax Treatment | No taxes on your distributions in retirement. To be IRS qualified, you must have established the Roth 401(k) 5 or more years ago and you are taking the distribution on or after reaching age 59 ½ or due to disability or death. | Your distributions are taxed as ordinary income upon reaching retirement age (59 ½ years old). Note that if you take withdrawal before retirement age you will typically be subject to an added 10% penalty. |
Note that Roth 401(k) contribution limits are much higher than a Roth IRA and there are no income limits to use it.
Roth Catch-up Contributions in 2026 and Beyond
Starting in 2026, workers will be split into two categories depending on their earnings.
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Those with adjusted gross income more than $145,000 in the prior year will need to make all catch-up contributions as Roth contributions. This means you won’t be able to get a tax deduction for catch-up contributions.
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Those with income less than $145,000 in the prior year can do catch-up as either traditional pre-tax or as Roth contributions.
Note: This is only for catch-up contributions. Regular employee (and employer) contributions can be made as either pre-tax or post-tax.
What are the 401(k) contribution deadlines?
Other than for the self-employed starting their first Solo 401(k), all 401(k) participant contribution deadlines are typically the end of the calendar or December 31. Your employer can make contributions up until their business tax deadline. This is typically done with a 401(k) profit share.
If you are self-employed and have a Solo 401(k), your contribution deadline depends on your business entity type (LLC, sole proprietorship, S-corp, etc). Please note that all catch-up contributions are considered employee-side contributions.
| Business Entity Type | Employee Contributions Deadline | Employer Contributions Deadline |
|---|---|---|
| Sole Proprietors and Single- Member LLCs | 4/15/2026 to fund (Including Roth 401(k) and catch-up contributions) | 4/15/2026 to purchase and fund (all employer contributions must be made on a tax-deferred basis) |
| C-Corps and Multi-Member LLCs taxed as C-Corps | 12/31/2025 | 4/15/2026 |
| S-Corps, Partnerships, and Multi-Member LLCs taxed as S-Corps or Partnerships | 12/31/2025 | 3/17/2026 |
Please note that your Solo 401(k) provider will often have purchase and contribution deadlines earlier than the government deadline to ensure your plan is set up to receive qualifying contributions. It can take days to weeks for providers to set up your plan, so plan on purchasing well in advance.
If you are a sole proprietorship or single-member LLC, your employee contribution deadline will move to the calendar year-end in your second year of your Solo 401(k), but your employer contributions may be made up until your tax deadline if your provider allows. If you have an IRA, your contribution deadline is typically April 15th after the calendar year-end.
Should I do catch-up contributions?
Most experts suggest you'll need to save 10-15% of your income1 over a 40-year career to live comfortably after you leave the work world behind. It’s ultimately a personal decision. Since retirement accounts are tax-advantaged, one benefit of a catch-up contribution is that your money and any growth it attains in your account will only be taxed once. That might be extra appealing as you get closer to retirement age.
Key Takeaways
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If you're over the age of 50, you can make an annual catch-up contribution of $7,500 in a 401(k) or up to $1,000 in an IRA. This increases the total employee contribution limit to $31,000 in 2025 in a 401(k) and up to $8,000 in an IRA.
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If you’re ages 60-63, you can make an annual 401(k) super catch-up contribution of $11,250. This increases the total employee contribution limit to $34,750 in 2025. Workers age 64 or older must contribute at the normal catch-up contribution limit. IRAs do not offer a super catch-up option.
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Once the 2026 tax year starts, workers that earned more than $145,000 in 2025 (previous year) will need to make all catch-up contributions as Roth (after-tax). This is true for 401(k) and IRA users.
1Industry experts generally agree that, depending on when you begin contributing, a minimum contribution of 10-15%, will be necessary to reach a goal of 8 to 10 times your ending annual salary prior to retirement. You may want to review your current contribution level to determine whether you believe it is sufficient to meet your retirement goals. There is no guarantee that contributions at this level will result in sufficient funds to meet those goals.