If you’re turning 50 this year, you might be asking yourself, “Are there any benefits of hitting this milestone other than being able to join AARP?”
Well, if you’re making the maximum annual contribution to your retirement accounts but you’re still worried that you’re not building your nest-egg fast enough, the answer is “Yes!”
That’s because once you hit the big “Five Oh” you can take advantage of catch-up contributions, which in 2026 will let you put away as much as $9,100 more into your retirement accounts every year.
And if you're age 60, 61, 62 or 63 you can save even more.
Catch-up benefits for IRA contributors
You don’t have to have a retirement plan at work to take advantage of these catch-up benefits. In 2026, if you’re eligible to contribute to a Traditional or Roth IRA, you can invest an additional $1,100 over the standard $7,500 yearly maximum contribution, for a total of $8,600.
Even bigger benefits for retirement plan participants
If you’re under 50, your own annual contributions to your 401(k) plan maxes out at $24,500 a year in 2026. But once you turn 50, you can make additional annual catch-up contributions of up to $8,000 to your 401(k) plan (for a total of $32,500). (Note that not all plans allow for catch-up contributions.)
If your company makes matching or other contributions to your account, the total combined amount that you and your employer can contribute can be as high as $80,000 in 2025.
Combine them for maximum savings
If you participate in a retirement plan and have an IRA, the news is even better. You can take advantage of catch-up contributions in both accounts, allowing you to contribute a combined catch-up amount of as much as $9,100 more than those who haven't turned 50 yet.
"Super catch-ups" for the 60-63 club
If you turn 60, 61, 62 or 63 in 2026, the SECURE Act will allow you to put away up to $11,250 in"supercatch-up contributions" each year.in your 401(k) plan.
While taking advantage of catch-up contributions may be a no-brainer, one question you may want to ask is whether these contributions should be pre-tax or after-tax.
- Pre-tax contributions to your 401(k) account and tax-deductible Traditional IRA contributions can lower your taxable income. But you'll have to pay taxes when you start withdrawing money from these accounts.
- After-tax Roth IRA or Roth 401(k) contributions don't offer immediate tax benefits. However, once you start taking withdrawals at age 59½ or later you'll never pay taxes on earnings
You can split your annual $8,600 IRA contribution between a Traditional and Roth IRA. However, you may not be able to make both pre-tax and after-tax contributions to your 401(k) plan account at the same time. One way you may be able to get around this limitation is to change your contribution type from pre-tax to 401(k) at a certain point. For example, once you've made $24,500 in pre-tax contributions, you could designate the $8,000 catch-up amount to be in the form of after-tax Roth 401(k) contributions.
The one exception is for high earners. Starting in 2026, employees who earn more than $150,000 per year in W2 income from their employer can only make catch-up contributions as after-tax Roth 401(k) contributions.
If you're unsure of how to take advantage of catch-up contributions speak with your plan sponsor. For questions about IRA catch-up contributions you may want to talk to a financial advisor.
This article was authored by Michael Flaherty and Jeffrey Briskin. Michael is a senior financial advisor with Canby Financial Advisors, a SEC-registered investment adviser. SEC registration does not constitute an endorsement by the SEC nor a statement about any skill or training. Michael can be reached at 508.598.1082 or mflaherty@canbyfinancial.com. Jeffrey Briskin is Director of Marketing at Canby Financial Advisors.
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