What High-Earning Savers Over Age 50 Need to Know
Key Takeaways
- 401(k) catch-up contributions allow workers age 50 and older to save beyond the standard 401(k) contribution limit
- Beginning in 2026, high earners must make catch-up contributions on a Roth basis
- Workers ages 60–63 now have access to an even larger “super catch-up” contribution
401(k) catch-up contributions are designed to help employees accelerate savings later in their careers. For those approaching retirement, they offer a meaningful opportunity to set aside more for the next chapter of life.
How 401(k) Catch-Up Contributions Work
401(k) catch-up contributions allow employees age 50 and older to contribute more than the standard annual limit.
For 2026:
- Standard 401(k) contribution limit: $24,500, plus
- Catch-up contribution (age 50+): $8,000
This allows eligible employees to contribute up to $32,500 per year to their 401(k).
The Super Catch-Up Window (Ages 60–63)
The SECURE 2.0 Act introduced an expanded catch-up provision for a limited age range. Employees between ages 60 and 63 may contribute an additional $11,250 in 2026. Note that this $11,250 is in addition to the standard contribution of $24,500, not in addition to the first catch-up contribution.
That increases the total possible 401(k) contribution to $35,750 annually during those years.
Roth Catch-Up Requirements for High Earners
Starting in 2026, employees who are age 50 or older, and earned more than $150,000 in the prior year must make their 401(k) catch-up contributions on a Roth basis, assuming their 401(k) plan offers a Roth option. One important caveat is that this rule does not apply to 401(k) plans that do not offer Roth contributions. Today, the vast majority of 401(k) plans do have a Roth feature, meaning many high earners will be affected.
This eliminates the ability for certain high earners to make pre-tax catch-up contributions. While this may feel like a limitation, Roth contributions allow for tax-free growth and tax-free withdrawals in retirement.
Summary
401(k) catch-up contributions remain a valuable savings tool, but they’re just one component of a broader retirement and tax strategy, particularly for higher-income households.
Good financial planning isn’t a “one size fits all” experience. If you’re thinking about how this applies to your own situation, you’re already at the point where having a conversation makes sense. That’s where partnering with our practice begins:
