Catch-Up Contribution
Additional retirement plan contributions allowed for workers age 50 and older — $7,500 extra for 401(k) plans and $1,000 extra for IRAs in 2025.
Catch-up contributions are extra amounts that workers age 50 and older can contribute to retirement accounts beyond the standard annual limits. These provisions help older workers who may need to accelerate their retirement savings.
For 2025, the catch-up limits are: $7,500 for 401(k), 403(b), and 457(b) plans (on top of the regular $23,500 limit, for a total of $31,000); and $1,000 for Traditional and Roth IRAs (on top of the $7,000 limit, for a total of $8,000). SIMPLE IRA catch-up contributions are $3,500.
Starting in 2026, SECURE 2.0 introduces a "super catch-up" for workers ages 60 through 63, allowing 401(k) catch-up contributions of $11,250 instead of the standard $7,500. Note that for high earners with wages over $145,000, catch-up contributions to 401(k) plans must be made on a Roth (after-tax) basis starting in 2026 under SECURE 2.0 provisions.
Related Terms
401(k)
An employer-sponsored retirement savings plan that lets you contribute pre-tax income (or after-tax with Roth 401(k)). The 2025 employee contribution limit is $23,500.
Traditional IRA
An individual retirement account where contributions may be tax-deductible and investments grow tax-deferred. The 2025 contribution limit is $7,000 ($8,000 if age 50+).
Roth IRA
A retirement account funded with after-tax dollars. Qualified withdrawals in retirement — including all growth — are completely tax-free. The 2025 contribution limit is $7,000 ($8,000 if 50+).
Employer Match
A contribution your employer makes to your 401(k) or similar retirement plan based on how much you contribute, often matching 50% to 100% of the first 3% to 6% of your salary.