Higher Catch-Up Limits for Employees at age 60, 61, 62, & 63

Higher catch-up limits for employees at age 60, 61, 62, and 63. Beginning at age 50, participants can contribute an extra $7,500 (indexed annually) into a workplace 401(k) or 403(b) retirement plan, called a “catch-up” contribution. The new provision permits an additional catch-up contribution specifically for employees aged 60 to 63. The adjusted limit will be the greater of $10,000 or 150% of the regular catch-up amount (as indexed). The $10,000 amount will be indexed for inflation starting in 2026.

Applicable plans: 401(k), 403(b), governmental 457(b), SIMPLE plans