Catch‑Up Contributions After 50: Maximize Your Retirement Savings

If you're over 50 and feeling the pressure of retirement approaching, you're not alone. Many of our clients wonder if they've saved enough or if it's too late to catch up.

The good news? It's not too late. The IRS has built in ways for people over 50 to save more. You may know about 401(k) catch-up contributions, but that's just the start. Here are several strategies to help you maximize your savings beyond the typical workplace retirement plan.

Catch-Up Contributions: How Much Can You Save After 50?

Let's start with the basics. In 2025, if you're 50 or older, you can contribute:

• 401(k) or 403(b): $23,500 plus a $7,500 catch-up contribution, totaling $31,000
• IRA (Traditional or Roth): $7,000 plus a $1,000 catch-up contribution, totaling $8,000

These contribution limits apply per person. So, if you're married and both are over 50, your total contribution capacity can be doubled.

What's New for Ages 60-63? The SECURE Act 2.0 Super Catch-Up

Beginning in 2025, the SECURE Act 2.0 allows those aged 60 to 63 to contribute even more to their 401(k) or 403(b):

• The greater of: $10,000 or 150% of the standard $7,500, which equals $11,250 additional
• Raises the total possible salary deferral limit to: $34,750 (excludes any employer match or profit sharing)

Note: Starting in 2026, high earners (earning over $145K) must direct catch-up contributions into a Roth account. Check with your plan administrator to see if your employer supports these changes.

Don't Overlook IRAs: Traditional and Roth Catch-Up Limits

IRA catch-up contributions are often overlooked. For 2025:

• Base: $7,000
• Catch-up: $1,000
• Total: $8,000

This is per person, so if you're married and both over 50, you could contribute up to $16,000 annually across two IRAs.

Note: Roth IRA eligibility is income-dependent. If you're above the threshold, a backdoor Roth strategy may be an option.

HSAs: The Triple-Tax-Advantaged Retirement Booster

Health Savings Accounts (HSAs) are powerful tools for those 55 and older with high-deductible health plans. In 2025:

• Individual: $4,300 + $1,000 catch-up = $5,300
• Family (one member over 55): $8,550 + $1,000 = $9,550
• Family (both members over 55): $8,550 + $2,000 = $10,550

Why it matters:

• HSA catch-up contributions are tax-deductible
• Growth is tax-deferred
• Withdrawals for qualified medical expenses are tax-free
• After age 65, withdrawals for non-medical expenses are allowed without penalty (income tax applies)

Mega Backdoor Roth: After-Tax 401(k) Contributions Explained

If your 401(k) allows after-tax contributions beyond the standard limit, you may be able to contribute significantly more and convert it to a Roth, commonly called a "mega backdoor Roth."

This is a plan-dependent strategy that can be especially effective for high earners looking to add more Roth savings.

Check with your plan administrator to confirm whether after-tax contributions and in-plan Roth conversions are permitted.

457(b) Plans: Unique Catch-Up Rules for Public Sector Employees

If you're a government or nonprofit employee, you might have access to a 457(b) plan. These plans provide two catch-up options, but you can only use one at a time:

1. Traditional Age 50+ Catch-Up

• Base: $23,500
• Catch-up: $7,500
• Total: $31,000

2. "Final Three Years" Special Catch-Up

Up to double the base limit — if you have unused contribution room and are within three years of "normal retirement age" (as defined by your employer).

• Potential contribution: Up to $47,000 in a single year (2 × $23,500)

Note: The employer-defined "normal retirement age" usually defaults to 65, but verify your specific plan details.

Compare Catch-Up Contribution Opportunities (2025)

What Steps Should You Take Now?

1. Check your age and plan options – Does your retirement plan allow the super catch-up or 457(b) final 3-year option?

2. Adjust payroll elections – If your cash flow allows, increase your deferrals to contribute the maximum before the end of the year.

3. Coordinate across accounts – Carefully review your overall savings strategy across all retirement accounts to optimize cash flow and tax benefits (pre-tax versus after-tax contributions).

4. Understand Roth rule changes – For 2026 and beyond, high earners will need to direct catch-up contributions to Roth accounts.

5. Consult your financial planner – A coordinated approach can help you streamline elections and maximize flexibility, especially on pre-retirement 457(b) and mega backdoor Roth.

Frequently Asked Questions: Catch-up Contribution for Individuals Over 50

What is the 401(k) super catch-up for ages 60-63?

Starting in 2025, individuals aged 60 to 63 can contribute the greater of $10,000 or 150% of the regular catch-up limit, potentially adding up to $11,250 more than the usual contributions.

Can I contribute to both a 401(k) and an IRA after age 50?

Yes. You can contribute $31,000 to your 401(k) and $8,000 to an IRA, depending on income eligibility.

Are HSA contributions still beneficial after retirement?

Absolutely. After age 65, withdrawals are penalty-free for any reason, though income tax applies to non-medical expenses.

Schedule a Time to Talk

If you're unsure whether you're optimizing every available opportunity, let's talk. Our team helps clients over 50 coordinate catch-up strategies, tax planning, and retirement income planning so they can move forward confidently.

Source: Contribution limits based on 2025 figures as outlined by the IRS

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