What are catch-up contributions and who can make them?

Catch-up contributions are additional elective deferrals that workers age 50 and older can make to a qualified retirement plan, such as a 401(k), 403(b), 457(b), or IRA. They let you accelerate savings during your peak earning years. For 2026, the standard 401(k) catch-up limit is $8,000, and the IRA catch-up is $1,100. Savers ages 60 through 63 may qualify for a higher super catch-up of $11,250 if their plan offers it.

Should I make Roth or traditional catch-up contributions in 2026?

If your prior-year FICA wages from your plan sponsor exceeded $150,000, the SECURE 2.0 Act requires your catch-up contributions to be designated Roth beginning in 2026. Roth contributions go in after-tax and grow tax-free for retirement. If your plan does not offer a Roth 401(k) option, you will not be able to make catch-up contributions at all, so confirm with your plan administrator. Work with your tax professional to model whether Roth catch-ups improve your long-term tax efficiency or if traditional catch-ups are the better option.

Where do I find my current 401(k) contribution limits and plan options?

Your plan administrator or HR department can confirm whether your employer offers the super catch-up for workers ages 60-63 and whether a Roth 401(k) option is available. The IRS also publishes updated contribution limits each year. Your wealth advisor can review your full financial picture and help you determine the most effective contribution strategy for your situation.

What is the difference between the standard catch-up and the super catch-up?

The standard catch-up applies to savers 50 and older and is $8,000 for 401(k) plans in 2026. The super catch-up is a higher limit of $11,250 that applies only to savers who turn 60, 61, 62, or 63 during the year. The super catch-up is optional and replaces the standard catch-up for that age window, but only if your plan permits it. Employers that are part of a controlled group may have less flexibility in offering it.

Do I need to update my financial plan because of the new catch-up rules?

The updated limits and the mandatory Roth catch-up can affect your tax, investment, and estate plan, so it is worth revisiting your strategy. Higher contribution limits help only if your portfolio is built to put those dollars to work, and a growing Roth balance can simplify eventual transfers to beneficiaries. Coordinating catch-up decisions across these areas is where a comprehensive financial plan can add the most value.

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Want to learn more about Mercer Advisors?

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