Catch-Up Contributions: What to Check for 2026
Eligible workers age 50 and older can save above the regular workplace-plan limit. Your age, employer's plan, and prior-year wages affect the amount and tax treatment.
October 12, 2026
If you are approaching retirement and want to increase workplace savings, check the catch-up provisions in your employer's plan. These allow eligible participants to contribute above the regular employee limit.
The available amount depends on your age and the plan's terms. A separate rule affects the tax treatment of catch-ups for some higher earners in 2026.
Confirm the Limits Your Plan Offers
For most 401(k) and 403(b) plans, the 2026 employee deferral limit is $24,500. An eligible participant who reaches age 50 during the year can generally contribute an additional $8,000 if the plan permits catch-ups.
That produces a potential employee total of $32,500. For participants who reach ages 60, 61, 62, or 63 during 2026, an available higher catch-up is $11,250, producing a potential total of $35,750. The higher amount replaces the standard catch-up.
These are federal limits, not a promise that every participant can contribute the maximum. Plan terms and other applicable restrictions matter. SIMPLE plans have different limits. Employer contributions are subject to separate rules.
Check the Roth Requirement
Beginning in 2026, affected participants whose 2025 Social Security wages from the sponsoring employer exceeded $150,000 generally must make catch-up contributions as Roth contributions.
Roth contributions are made after tax. Qualified distributions receive tax-free treatment under the applicable rules. The catch-up requirement does not, by itself, require the regular employee deferral to be Roth.
Ask payroll which wages were used and how the plan applies the requirement. Total household income is not the same as the employer-wage test. Job changes, certain employer arrangements, and plan-specific transition rules may require further review.
If the plan does not offer Roth contributions, ask the administrator how that affects your ability to make catch-ups. Do not assume that the payroll system will resolve the issue automatically.
Calculate What Remains for This Year
Look at contributions already made and the paychecks remaining. Subtract year-to-date employee contributions from your intended annual total before dividing by the remaining pay periods.
For example, if your target is $32,500 and you have already contributed $20,000, the remaining target is $12,500. With ten paychecks left, that would be $1,250 per paycheck. This is a hypothetical calculation, not a recommended contribution amount.
Check whether you can afford the change after taxes and other expenses. Confirm the date on which a new election becomes effective.
Protect the Employer Match
A larger election can reach the annual limit early. If matching contributions depend on each paycheck and the plan has no applicable year-end adjustment, that timing could affect the match you receive.
Ask how matching contributions are calculated before front-loading deferrals. Also ask whether separate elections are needed for regular and catch-up contributions and how Roth treatment is recorded.
If you contributed through another employer during the year, tell the administrator. Annual employee limits may apply across plans, and a new payroll system may not know what you already contributed elsewhere.
Consider Other Savings Needs
A workplace catch-up is one option for retirement savings. Keep emergency reserves and near-term obligations in view before increasing contributions.
IRAs have separate limits and eligibility rules. A contribution's deductibility or Roth eligibility can depend on income and workplace coverage. Compare those choices with your tax professional rather than assuming the rules match your employer plan.
What This Means For You
- Confirm the catch-up amount your plan offers for your age.
- Ask payroll whether the Roth requirement applies.
- Subtract contributions already made when calculating the remaining target.
- Check the effect on your employer match before changing an election.
If your plan is served by 401(k) Specialists, the professionals there provide enrollment and education assistance and participant support services. Contact (559) 777-2720 or visit thiesendueker.com/401kspecialists for help finding the right plan contact.
Frequently Asked Questions
How much can an eligible worker contribute in 2026?
For most 401(k) and 403(b) plans, the regular employee limit is $24,500. The standard age-50 catch-up is $8,000, giving a potential total of $32,500 if permitted by the plan.
What contribution changes can I make at ages 60 to 63?
An eligible participant reaching one of those ages during 2026 may use a higher catch-up of $11,250 instead of $8,000, if the plan offers it. The potential employee total is $35,750.
Which contributions must be Roth for higher earners?
For 2026, affected participants with more than $150,000 in 2025 Social Security wages from the sponsoring employer generally must make their catch-up contributions as Roth. Confirm how the rule applies with payroll or the administrator.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advisory services must be obtained on your own separate from this educational material.
Sources
Important Disclosures
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
This material was prepared for Thiesen Dueker's use.
Making informed choices about your 401(k) and other retirement benefits at work.
Explore More Topics
Talk With an Advisor
To discuss how this applies to you, call (559) 448-8190.