Navigating the New 401(k) Catch-Up Rules for 2026
Maximize your retirement savings with this guide to the 401(k) catch-up contribution rules. We cover standard catch-up contributions, “super” catch-up limits, the SECURE 2.0 Roth rules for high earners, and how these changes impact you. For workers 50 or older, these additional contributions to a 401(k) plan can help set you up for a comfortable retirement.
The One Big Beautiful Bill that passed includes permanently extending tax cuts from the Tax Cuts and Jobs Act, including increasing the cap on the amount of state and local or sales tax and property tax (SALT) that you can deduct, makes cuts to energy credits passed under the Inflation Reduction Act, makes changes to taxes on tips and overtime for certain workers, reforms Medicaid, increases the Debt ceiling, and reforms Pell Grants and student loans. Updates to this article are in process. Check our One Big Beautiful Bill article for more information.
Key Takeaways
- Catch-up contributions allow you to put more money in your 401(k) account if you’re at least 50 years old by the end of the year.
- For 2026, 401(k) catch-up contributions of up to $8,000 are allowed – for a total 401(k) contribution limit of $32,500 – if you’re either age 50 to 59 or 64 and older.
- If you’re 60 to 63 years old at the end of 2026, catch-up contributions of up to $11,250 are allowed for the year – for a total 401(k) contribution limit of $35,750.
- Starting in 2026, 401(k) catch-up contributions must go into a Roth account if your FICA wages for the previous year are above a certain amount.
What are 401(k) “catch-up” contributions?
For workers saving for retirement through a 401(k) plan, catch-up contributions are additional amounts you can put in your account beyond the standard annual contribution limit (they’re allowed for IRAs, too). But you can only make 401(k) catch-up contributions if you’ll be at least 50 years old by the end of the year.
Catch-up contributions are “designed to incentivize additional savings,” says Kelly Wallace, a CPA and TurboTax Expert based in Homedale, Idaho. People often don’t save enough for retirement when they’re younger. In many cases, there are just so many other things you’re trying to save up for during that period of your life, like buying a home or putting your kids through college. However, as you get older and realize you need to squirrel away more for your golden years, the higher contribution limits help you “catch up” (hence the name) and boost your retirement savings.
What are the 401(k) catch-up contributions for 2026?
In 2026, you can put up to $24,500 in your 401(k) accounts if you’re under 50 years old. However, with an additional catch-up contribution of $8,000, you can stuff up to $32,500 in 401(k) accounts in 2026 if you’re 50 or older by the end of the year ($24,500 + $8,000 = $32,500).
Plus, starting in 2025, “super” 401(k) catch-up contributions are allowed for workers who are 60 to 63 years old at the end of the year. As a result, the catch-up contribution for employees within that age range is $11,250 (instead of the $8,000) for 2026. That means they can contribute up to $35,750 in their 401(k) accounts in 2026 ($24,500 + $11,250 = $35,750).
The 401(k) contribution limits – including for catch-up contributions – are adjusted annually to account for inflation. For example, from 2025 to 2026, the standard contribution limit increased by $1,000, while the regular catch-up contribution limit jumped $500 (the “super” catch-up contribution stayed the same). So, make sure you check the new limits each year, because they can change from one year to the next.
|
401(k) Contribution Limits – 2025 vs. 2026 |
||
|
Age at End of Year |
Overall Limit for 2025 (including catch-up contributions) |
Overall Limit for 2026 (including catch-up contributions) |
|
49 or younger |
$23,500 |
$24,500 |
|
50 to 59; 64 and older |
$31,000 |
$32,500 |
|
60 to 63 |
$34,750 |
$35,750 |
Are catch-up contributions only allowed for 401(k) accounts?
The same catch-up contributions allowed for 401(k) plans (as well as the standard annual contribution limits) also apply to:
- 403(b) plans, which are employee retirement plans established by public schools, tax-exempt organizations, and churches
- 457 plans, which are employee retirement plans established by state or local governments and tax-exempt organizations
- federal government’s Thrift Savings Plan
A 401(k) plan is for private-sector workers. However, these other employer-sponsored retirement savings plans generally work the same as 401(k) plans, but just for a different set of employees.
IRAs and Health Savings Accounts (HSAs) also have catch-up contributions. However, they don’t have “super” catch-up contributions, which only apply to 401(k) plans. For IRAs, catch-up contributions are available when you turn 50, but they’re not allowed for HSAs until you’re at least 55 years old.
TurboTax Tip:
"Catch-up contributions are extra contributions allowed to certain retirement plans for individuals meeting the age-based requirements." – Kelly Wallace, CPA, Homedale, Idaho
What is the new catch-up contribution Roth requirement for high-earners?
Starting in 2026, catch-up contributions to a 401(k) plan made by certain high-income workers must go into a Roth 401(k) account (as opposed to a “traditional” 401(k) account). This change was enacted by the SECURE Act 2.0, which was signed into law in December 2022. It was originally scheduled to take effect in 2024, but the IRS delayed the start date to give employers more time to prepare for the new rule.
For contributions made in 2026, the Roth requirement applies if you earned at least $150,000 of FICA wages in 2025 (that is, wages that were subject to FICA payroll taxes). The threshold amount will be adjusted for inflation each year.
“If your employer’s 401(k) plan lacks a Roth option,” notes Wallace, “you’re prevented from making any catch-up contributions if your wages are above the threshold amount for the year.”
How will the new Roth requirement impact my taxes?
The new Roth requirement for 401(k) catch-up contributions is an important change, because both the tax advantages allowed and timing of tax payments for Roth accounts and “traditional” accounts are different.
With a traditional 401(k) account, money put in the account isn’t included in your taxable income for the year of the contribution. That will cut your tax bill for that year. Funds in the account then grow on a tax-deferred basis. As a result, you pay income tax on money in the account – both contributions and earnings – when you withdraw it from the account (a 10% penalty may also apply if you take money out of the account before you turn 59½ years old).
On the other hand, with a Roth 401(k) account, there’s no immediate tax break – money going into the account is included in your taxable income, so you pay income tax on it for that tax year. However, it grows on a tax-free basis. That means earnings typically aren’t subject to tax when you withdraw them in retirement (although taxes and the 10% penalty may apply to earnings withdrawn before turning 59½). Plus, your contributions to a Roth account generally can be taken out at any time without paying tax on them.
So, the main differences between traditional and Roth 401(k) accounts are when you get a tax break and when you pay income taxes on your contributions and earnings. With a traditional account, you get a tax break right away, but pay taxes when you withdraw funds from the account. With a Roth account, taxes are paid up front, but you generally get tax-free withdrawals once you retire.
Here are a couple of examples to illustrate how 401(k) catch-up contributions work under both the new Roth requirement rules and the old rules.
Example 1 – New Rules Apply: You’re single, turned 62 years old in 2026, and earned $200,000 of FICA wages in 2025. You contribute $35,750 to your 401(k) plan in 2026 (the maximum amount allowed for someone your age), of which $11,250 is classified as catch-up contributions. Since your 2025 wages are over the threshold amount for 2026 contributions, all $11,250 of your catch-up contributions must be put in a Roth 401(k) account.
As a result, you will pay tax on the $11,250 of catch-up contributions when you file your federal income tax return for the 2026 tax year (which you’ll file in 2027). If, say, you’re in the 24% tax bracket, you’ll owe $2,700 of federal income tax on those contributions ($11,250 x 0.24 = $2,700). However, when you withdraw that amount in retirement, plus any earnings on it, you won’t owe any tax on it.
Example 2 – Old Rules Apply: Assume the same facts as Example 1, except the new 401(k) Roth requirement doesn’t apply. As a result, you put all $11,250 of your catch-up contributions in a traditional 401(k) account.
You won’t pay tax on the $11,250 of catch-up contributions when you file your federal income tax return for the 2026 tax year. So, for example, your federal income tax bill will be $2,700 lower if you’re in the 24% tax bracket ($11,250 x 0.24 = $2,700). However, when you take money out of the account in retirement, you’ll owe federal income tax on whatever you withdraw (both contributions and earnings).
Frequently Asked Questions About 401(k) Catch-Up Contribution Limits
Q1: Is the new Roth requirement permanent?
The new requirement that 401(k) catch-up contributions made by higher-income workers be put in a Roth account doesn’t have an expiration date. So, assuming the law isn’t changed, the new rule is permanent.
Compare the tax benefits of different retirement savings plans (including 401(k) plans and IRAs).
Q2: Are RMDs required from Roth 401(k) accounts?
Required minimum distributions (RMDs), which are mandatory withdrawals from retirement accounts, aren’t required for Roth 401(k) accounts. However, they generally must be taken from traditional 401(k) accounts each year once you turn 73 (75 if you’re born after 1959).
See what the IRS says about RMDs.
Q3: What other strategies can I try to increase my retirement savings?
In addition to making catch-up contributions to your 401(k) plan, there are other ways to build up your retirement savings. For instance, if your employer matches your 401(k) plan contributions, make sure you follow the rules to maximize the match.
You can also increase your 401(k) contributions – particularly if you get a raise. Some plans allow you to set up automatic increases each year (or on some other timeframe).
Put money in an IRA, too. The contribution limits for IRAs are independent of the limits for 401(k) plans, so you can max out 401(k) contributions and IRA contributions in the same year. Plus, you may qualify for a tax deduction for contributions to a traditional IRA for the year the contributions are made (no deduction is available for contributions to a Roth IRA).
“Also consider contributing to other tax-deferred accounts, such as HSAs,” says Wallace. You get multiple tax benefits with HSAs – a tax deduction for contributions, tax-free growth, and no taxes on withdrawals used to pay for qualified medical expenses. But you must have a qualifying health insurance plan to contribute to an HSA.
Check out these tax tips for when you retire.
Q4: How do historical 401(k) catch-up limits compare to 2026 amounts?
Catch-up contributions for 401(k) plans were first allowed in 2002, when people 50 and older could contribute an additional $1,000 over the $11,000 standard contribution limit for that year (for a total limit of $12,000). However, the amount allowed has grown over the years (although not every year) because of legislative changes and inflation adjustments. “Super” catch-up contributions for people 60 to 63 years old were added by the SECURE Act 2.0 starting in 2025.
|
Year |
Standard Contribution Limit |
Catch-Up Contribution |
“Super” Catch-Up Contribution |
|
2026 |
$24,500 |
$8,000 |
$11,250 |
|
2025 |
$23,500 |
$7,500 |
$11,250 |
|
2024 |
$23,000 |
$7,500 |
N/A |
|
2023 |
$22,500 |
$7,500 |
N/A |
|
2022 |
$20,500 |
$6,500 |
N/A |
|
2021 |
$19,500 |
$6,500 |
N/A |
|
2020 |
$19,500 |
$6,500 |
N/A |
|
2019 |
$19,000 |
$6,000 |
N/A |
|
2018 |
$18,500 |
$6,000 |
N/A |
|
2017 |
$18,000 |
$6,000 |
N/A |
|
2016 |
$18,000 |
$6,000 |
N/A |
|
2015 |
$18,000 |
$6,000 |
N/A |
|
2014 |
$17,500 |
$5,500 |
N/A |
|
2013 |
$17,500 |
$5,500 |
N/A |
|
2012 |
$17,000 |
$5,500 |
N/A |
|
2011 |
$16,500 |
$5,500 |
N/A |
|
2010 |
$16,500 |
$5,500 |
N/A |
|
2009 |
$16,500 |
$5,500 |
N/A |
|
2008 |
$15,500 |
$5,000 |
N/A |
|
2007 |
$15,500 |
$5,000 |
N/A |
|
2006 |
$15,000 |
$5,000 |
N/A |
|
2005 |
$14,000 |
$4,000 |
N/A |
|
2004 |
$13,000 |
$3,000 |
N/A |
|
2003 |
$12,000 |
$2,000 |
N/A |
|
2002 |
$11,000 |
$1,000 |
N/A |
|
2001 |
$10,500 |
$0 |
N/A |
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