Workers approaching retirement have an opportunity to contribute additional money to certain workplace retirement plans beyond the standard employee contribution limit. These additional deposits are known as catch-up contributions.
For 2026, federal rules provide higher catch-up limits for some workers, including a larger allowance for people aged 60 through 63. New Roth treatment requirements also apply to certain higher-paid employees.
The Standard Contribution Limit
For 2026, the regular employee contribution limit for many 401(k), 403(b) and similar plans is $24,500. This is separate from any employer contributions, subject to the overall plan limits and applicable rules.
Eligible workers age 50 or older may be able to contribute an additional $8,000 in catch-up contributions if their plan permits them.
The Higher Limit for Ages 60 to 63
A special higher catch-up limit applies to eligible workers who turn 60, 61, 62 or 63 during the calendar year. For 2026, that limit is $11,250 instead of the standard $8,000 catch-up amount.
This provision is intended to give some workers a larger opportunity to build retirement savings during the years immediately before the traditional retirement period.
The higher limit does not mean every employer plan automatically accepts the maximum. Plan terms and payroll arrangements still matter.
Roth Catch-Up Contributions for Certain Higher Earners
Beginning in 2026, employees whose prior-year wages from the plan sponsor exceeded $150,000, subject to the applicable indexed threshold, generally must make catch-up contributions on a Roth basis if the plan offers the relevant Roth feature.
Roth contributions are made with after-tax money. They do not provide the same current-year income-tax deduction as traditional pre-tax salary deferrals, although qualified Roth distributions can be tax-free.
This change can affect take-home pay and tax planning for higher-paid employees who rely on catch-up contributions.
What Workers Should Do
Employees should check their plan's contribution options, payroll deadlines and treatment of catch-up contributions. They should confirm whether the plan supports the higher age-based limit and whether the Roth catch-up rule applies to them.
Workers should also review how contributions interact with employer matching. Some plans calculate matching contributions differently for regular and catch-up deferrals.
Avoid Waiting Until the Final Paycheck
Catch-up contributions are generally made through salary deferrals during the plan year. Employees who want to use the full allowance should check their payroll schedule and avoid assuming they can simply deposit the entire amount after the year ends.
A change in employment, compensation or plan participation can affect the amount an individual is able to contribute.
The Bottom Line
The 2026 catch-up rules provide additional contribution room for many workers over 50 and a larger limit for eligible people aged 60 to 63. Higher-paid employees may also face mandatory Roth treatment for catch-up contributions. Checking plan rules and payroll settings early can help workers use the available allowance correctly.
This article is for informational and educational purposes only and should not be considered personalized financial, investment, retirement or tax advice.
