One could say that there are only two key milestones in retirement planning: the day you begin participating in a retirement savings account and the day you begin drawing money from it. But, of course, there are others as well.
One is the day you turn 50 years old. Why? Because those age 50 or older on December 31 of any given year can start making “catch-up” contributions to their employer-sponsored retirement plans by that date. These are additional contributions to certain retirement accounts beyond the regular annual limits.
Maybe you haven’t yet saved as much for retirement as you’d like to. Or perhaps you’d just like to make the most of tax-advantaged savings opportunities. Whatever the case may be, let’s get caught up with the latest catch-up contribution amounts.
401(k)s and SIMPLEs
Under 2026 limits for 401(k)s, if you’re age 50 or older, after you’ve reached the $24,500 maximum limit for all employees, you can contribute an extra $8,000, for a total of $32,500. (In 2025, the contribution limit was $23,500 with a $7,500 catch-up contribution for those age 50 or older.)
If your employer offers a Savings Incentive Match Plan for Employees (SIMPLE) instead, your regular contribution maxes out at $17,000 in 2026 (up from $16,500 in 2025). If you’re 50 or older, you’re allowed to contribute an additional $4,000 in 2026 (up from $3,500 in 2025). That means if you’re eligible for catch-up contributions in 2026, you can contribute $21,000 in total for the year.
But check with your employer because, while most 401(k) plans and SIMPLEs offer catch-up contributions, not all do.
Self-Employed Plans
If you’re self-employed, retirement plans such as an individual 401(k) — or solo 401(k) — also allow catch-up contributions. A solo 401(k) is a plan for those with no other employees. You can defer 100% of your self-employment income or compensation, up to the limit of $24,500 in 2026, plus an $8,000 catch-up contribution. These amounts are up from $23,500 in 2025, plus a $7,500 catch-up contribution.
Keep in mind that this is just the employee salary deferral portion of the contribution. You can also make an “employer” contribution of up to 20% of self-employment income or 25% of compensation.
IRAs, Too
Catch-up contributions to a traditional (non-Roth) account not only can enlarge your retirement nest egg but also may reduce your tax liability. And keep in mind that catch-up contributions are available for IRAs, too, and the deadline for 2026 contributions is April 15, 2027. The amount you can contribute to a traditional or Roth IRA in 2026 is $7,500 with a $1,100 catch-up contribution (up from $7,000 and $1,000, respectively, for 2025. If you have questions about catch-up contributions or other retirement saving strategies, contact your tax advisor.