Catch-Up Contributions: A Retirement Superpower After 50
If you got a late start on retirement saving, the tax code hands you a real gift the year you turn 50: catch-up contributions. These let you put extra money — above the normal limits — into your 401(k) and IRA.
What you can add
On top of the standard annual limits, workers 50 and older can contribute additional "catch-up" amounts to workplace plans like a 401(k), and a smaller catch-up amount to an IRA. The exact figures change most years, so check the current limits on the IRS retirement plans page before you set your payroll deferral.
Why it matters so much
The last decade before retirement is when your accounts are largest, so every extra dollar you contribute is also a dollar that gets tax-advantaged growth right when compounding is most powerful. Maxing catch-up contributions for even a few years can meaningfully move your "number."
How to actually do it
- Raise your 401(k) deferral percentage through your employer's portal.
- Automate an extra IRA contribution each month so you don't have to think about it.
- Consider whether a Roth version makes sense if you expect higher taxes later.
It's one of the few genuinely simple, high-impact moves available late in the game — and it's available to you the moment you hit 50.