The standard 401k catch-up contribution limit for workers aged 50 and older is 8,000 dollars. However, if you are in your early 60s, a special rule under the SECURE 2.0 Act increases this limit even further.
How the catch-up tiers split by age
The IRS structures catch-up limits to help workers maximize their savings as they approach retirement. The exact amount you can save beyond the normal 24,500 dollar employee contribution limit depends on your precise age.
- For ages 50 to 59 and 64+: You can contribute an extra 8,000 dollars, allowing for a total personal contribution of 32,500 dollars.
- For ages 60 to 63 (The “Super Catch-Up”): You qualify for a higher limit of 11,250 dollars if your company plan supports it. This boosts your total personal contribution limit to 35,750 dollars.
The high-earner Roth requirement rule
A major change affecting catch-up contributions applies to high earners. Under the SECURE 2.0 Act, the IRS changes how your catch-up money is taxed based on your prior-year wages.
If you earned more than 150,000 dollars in FICA (Social Security) wages at your company in the previous calendar year, you can no longer make pre-tax catch-up contributions. Instead, the IRS legally mandates that your catch-up contributions be made on a Roth (after-tax) basis.
While you lose the immediate upfront tax break on those catch-up dollars, that money will grow completely tax-free, and you will not owe a single penny of income tax on it when you pull it out in retirement. If your income falls below the 150,000 dollar threshold, you retain the freedom to choose between traditional pre-tax or Roth catch-up paths.