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Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 148 (from laksa130)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa148.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/401k-catch-up-contributions-5499024\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/401k-catch-up-contributions-5499024\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024","crawl_time":1776216137,"first_indexed_time":1659995604,"http_code":200,"src_unparsed":"com,investopedia!www,\/401k-catch-up-contributions-5499024 s443","src_root_hash":"7273739457760125548","history_drop_reason":null,"meta_title":"How Do 401(k) Catch-Up Contributions Work?","meta_descriptions":["You can contribute more to your 401(k) once you reach age 50. In this article, we’ll explain how these catch-up contributions work."],"attrs_boilerpipe_text":"If your employer offers a\n401(k) plan\n, this can be a very effective way of saving for retirement. The money that you put in your plan is tax-deferred, so you won’t pay income tax on it for the year when you earn it. Instead, you’ll be\ntaxed when you take it out\nof your 401(k) account during retirement. Since most people are in a lower tax bracket in retirement than they are when they are working, this can save you a lot of money. \nThere are\nannual limits\non how much you can contribute to your 401(k) account, and people aged 50 and older can make additional\ncatch-up contributions\n. Those aged 60 to 63 are allowed even higher catch-up contributions.\nMaking these catch-up contributions can make all the difference when it comes to retiring comfortably. In this article, we’ll explain how you can make them and why you should.\nKey Takeaways\nWorkers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. \nIf you are already making the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes.\nHowever, the majority of workers simply do not earn enough to be able to contribute the maximum amounts.\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\nUnderstanding Catch-Up Contributions\nThere are annual limits to how much you can contribute to your 401(k). These limits increase every year to account for inflation. This limit applies across all 401(k) plans you have, including any\nRoth 401(k)\naccounts. It includes all elective employee salary deferrals and any after-tax contributions made to a designated Roth account within your 401(k) or a special Roth 401(k) plan.\nThe same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan (TSP). However, contributions that you make to any other type of retirement plan, such as a\ntraditional\nor\nRoth individual retirement account (IRA)\n, don’t count toward the limit.\nThe only exception to this is once you reach 50 years old. At this point, to encourage workers nearing retirement to speed up their savings, the Internal Revenue Service (IRS) allows 401(k) participants ages 50 and older to make additional contributions beyond the standard contribution limit.\nThis is known as a catch-up contribution, and it applies from the start of the year to those turning 50 at any time during the year. So, even if you turn 50 on New Year’s Eve, you can still make this extra contribution for that tax year. For individuals aged 60 to 63, the IRS allows even higher catch-up contribution limits.\nImportant\nIf you are age 50 or older, you can make an additional contribution to your 401(k). This will save you tax in the short term, and it could make a big difference to the size of your portfolio by the time you retire.\nWhy You Should Make Catch-Up Contributions\nThere are several advantages to making catch-up contributions, and these are largely similar to the more general advantages of a 401(k) plan. By choosing to contribute more to your 401(k), you will further reduce your tax bill. If you are in a relatively high tax bracket, these savings can be significant.\nIn addition, if you start putting extra money into your 401(k) at age 50 and don’t retire until you are 65 or even older, it can boost the value of your retirement portfolio significantly.\nThat said, contributing the total allowable amount to a 401(k) is a stretch for many people. Even a worker earning a relatively generous salary would have to put aside a large portion of their income, and someone earning a low salary is unlikely to be able to put aside more than half of their income for retirement. \nIt is primarily workers with high incomes and large account balances who can make catch-up contributions, Vanguard has found.\nIn other words, if you are already earning a good salary, are on track with your other financial goals, and are bumping up against the 401(k) contribution limit, catch-up contributions can be great. The majority of workers, however, are simply not earning enough to take advantage of the increased limit.\nWhat Is a 401(k) Catch-Up Contribution?\nWorkers aged 50 and older can make an additional annual contribution to their 401(k) plan, in addition to the standard limits. Those aged 60 to 63 can contribute even higher amounts.\nWhat Is the Maximum 401(k) Catch-Up Contribution?\nThe IRS sets annual contribution limits for 401(k) plans, including for catch-up contributions. All contribution limits are adjusted annually to account for inflation. These numbers can be found on the IRS website.\nShould I Make Catch-Up Contributions?\nIf you earn a good salary, are on track with your other financial goals, and can contribute additional amounts to your 401(k), you should. The more you can save, the better your financial health will be in retirement.\nThe Bottom Line\nWorkers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. Those aged 60 to 63 have even higher contribution limits.\nIf you already make the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. However, the majority of workers simply do not earn enough to be able to contribute the maximum amount.","attrs_markdown":"\n\n[Skip to content](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024#main)\n\n[Investopedia](https:\/\/www.investopedia.com\/)\n\n[Trade](https:\/\/www.investopedia.com\/simulator\/?inv_to_sim=global_nav)\n\n- Please fill out this field.\n- [Newsletters](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024)\n\nPlease fill out this field.\n\n- [News](https:\/\/www.investopedia.com\/news-4427706)\n  News\n  \n  - [Markets](https:\/\/www.investopedia.com\/markets-news-4427704)\n  - [Companies](https:\/\/www.investopedia.com\/company-news-4427705)\n  - [Earnings](https:\/\/www.investopedia.com\/earnings-reports-5218419)\n  - [CD Rates](https:\/\/www.investopedia.com\/certificates-deposit-news-7111770)\n  - [Mortgage Rates](https:\/\/www.investopedia.com\/mortgage-rates-5184598)\n  - [Economy](https:\/\/www.investopedia.com\/economic-news-5218422)\n  - 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[View All](https:\/\/www.investopedia.com\/personal-finance-4427760)\n- [Economy](https:\/\/www.investopedia.com\/economy-4689801)\n  - [Government and Policy](https:\/\/www.investopedia.com\/government-and-policy-4689793)\n  - [Monetary Policy](https:\/\/www.investopedia.com\/monetary-policy-4689792)\n  - [Fiscal Policy](https:\/\/www.investopedia.com\/fiscal-policy-4689796)\n  - [Economics](https:\/\/www.investopedia.com\/economics-4689800)\n  - [View All](https:\/\/www.investopedia.com\/economy-4689801)\n- [Reviews](https:\/\/www.investopedia.com\/financial-product-reviews-7110783)\n  - [Best Online Brokers](https:\/\/www.investopedia.com\/best-online-brokers-4587872)\n  - [Best Crypto Exchanges](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855)\n  - [Best Savings Rates](https:\/\/www.investopedia.com\/high-yield-savings-accounts-4770633)\n  - [Best CD Rates](https:\/\/www.investopedia.com\/best-cd-rates-4770214)\n  - [Best Life Insurance](https:\/\/www.investopedia.com\/the-best-life-insurance-companies-8763666)\n  - [Best Mortgage Rates](https:\/\/www.investopedia.com\/mortgage-rates-5094943)\n  - [Best Robo-Advisors](https:\/\/www.investopedia.com\/the-best-robo-advisors-8764849)\n  - [Best Personal Loans](https:\/\/www.investopedia.com\/the-best-personal-loans-8761582)\n  - [Best Debt Relief Companies](https:\/\/www.investopedia.com\/the-best-debt-relief-companies-8763179)\n  - [View All](https:\/\/www.investopedia.com\/financial-product-reviews-7110783)\n\nTable of Contents\n\nExpand\n\nTable of Contents\n\n- [How Catch-Up Contributions Work](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024#toc-understanding-catch-up-contributions)\n- [Why Make Catch-Up Contributions](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024#toc-why-you-should-make-catch-up-contributions)\n- [FAQs](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024#toc-what-is-a-401k-catch-up-contribution)\n- [The Bottom Line](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024#toc-the-bottom-line)\n\n# How Do 401(k) Catch-Up Contributions Work?\nYou can contribute more to your 401(k) beginning at age 50\n\nBy\n\n[Matt Ryan Webber](https:\/\/www.investopedia.com\/matt-ryan-webber-5202417)\n\n![Matt Ryan Webber]()\n\n![Matt Ryan Webber](https:\/\/www.investopedia.com\/thmb\/uxIErgqhrClHCVVTAeQCuMrVzLs=\/200x200\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/smda1_crop-f0c167dd2b2144f68f352c63d17f7db5.jpg)\n\n[Full Bio](https:\/\/www.investopedia.com\/matt-ryan-webber-5202417)\n\nMatt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture.\n\nLearn about our  [editorial policies](https:\/\/www.investopedia.com\/legal-4768893#editorial-policy)\n\nUpdated September 10, 2025\n\nReviewed by\n\n[Khadija Khartit](https:\/\/www.investopedia.com\/khadija-khartit-4799776)\n\n![Khadija Khartit]()\n\n![Khadija Khartit](https:\/\/www.investopedia.com\/thmb\/W2re2_rNx_MIW9RPQv9BMFNHVH4=\/200x200\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/Pic1-KhadijaKhartit-cc5b57fba2bd46ed87bdb3ddbcd2ef69.jpg)\n\nReviewed by Khadija Khartit\n\n[Full Bio](https:\/\/www.investopedia.com\/khadija-khartit-4799776)\n\nKhadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder.\n\nLearn about our  [Financial Review Board](https:\/\/www.investopedia.com\/investopedia-financial-review-board-5076269)\n\nFact checked by\n\n[Vikki Velasquez](https:\/\/www.investopedia.com\/vikki-velasquez-5198872)\n\n![Vikkie Velasquez]()\n\n![Vikkie Velasquez](https:\/\/www.investopedia.com\/thmb\/qsiqwN4603qvBBcEmwBBFAZ7h-8=\/200x200\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/vikki-velasquez-investopedia-portrait-1-18b989d75f1f4d6d9b5b3a47cb3ffc5f.jpg)\n\nFact checked by Vikki Velasquez\n\n[Full Bio](https:\/\/www.investopedia.com\/vikki-velasquez-5198872)\n\nVikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area.\n\nLearn about our  [editorial policies](https:\/\/www.investopedia.com\/legal-4768893#editorial-policy)\n\nPart of the Series\n\nStrategies to Maximize Your 401(k)\n\n[Best Strategies to Maximize Your 401(k)](https:\/\/www.investopedia.com\/articles\/personal-finance\/091515\/best-strategies-maximize-your-401k.asp)\n\nFees and Returns\n\n1. [What Return Rate Should I Expect on my 401(k) Returns](https:\/\/www.investopedia.com\/ask\/answers\/041015\/what-rate-return-should-i-expect-my-401k.asp)\n2. [401(k) Fees: Everything You Need to Know](https:\/\/www.investopedia.com\/articles\/personal-finance\/061913\/hidden-fees-401ks.asp)\n3. [Best Ways to Use Your 401(k) Without a Penalty](https:\/\/www.investopedia.com\/ask\/answers\/082015\/what-are-best-ways-use-your-401k-without-penalty.asp)\n4. [Income Limits for 401(k)s: Highly Compensated Employees](https:\/\/www.investopedia.com\/income-limits-401ks-highly-compensated-employees-5509365)\n5. [What to Do After You've Over-Contributed to Your 401(k)](https:\/\/www.investopedia.com\/ask\/answers\/158.asp)\n6. [Divorce and 401(k): What You Need to Know](https:\/\/www.investopedia.com\/divorce-and-401-k-5441868)\n\nRetirement and 401(k)s\n\n1. [Average 401(k) Balance by Age](https:\/\/www.investopedia.com\/articles\/personal-finance\/010616\/whats-average-401k-balance-age.asp)\n2. [How Do 401(k) Catch-Up Contributions Work?](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024)\n   CURRENT ARTICLE\n3. [How 401(k) Works After Retirement](https:\/\/www.investopedia.com\/articles\/personal-finance\/111615\/how-401k-works-after-retirement.asp)\n4. [401(k) Taxes When You Retire](https:\/\/www.investopedia.com\/articles\/personal-finance\/061915\/how-your-401k-taxed-when-you-retire.asp)\n5. [Can Your 401(k) Impact Your Social Security Benefits?](https:\/\/www.investopedia.com\/articles\/personal-finance\/103015\/can-your-401k-impact-your-social-security-benefits.asp)\n\nOther Types of 401(k)s and Retirement Plans\n\n1. [401(k) Self-Directed Brokerage Accounts](https:\/\/www.investopedia.com\/articles\/personal-finance\/061314\/rise-401k-brokerage-accounts.asp)\n2. [What is a Solo 401(k) or Self-Employed 401(k)?](https:\/\/www.investopedia.com\/ask\/answers\/100314\/do-i-need-employer-set-401k-plan.asp)\n3. [SIMPLE 401(k) Plans](https:\/\/www.investopedia.com\/articles\/retirement\/04\/052604.asp)\n4. [Can I Fund a Roth IRA and Contribute to My Employer's Retirement Plan?](https:\/\/www.investopedia.com\/ask\/answers\/081414\/can-i-contribute-roth-ira-and-still-participate-my-employersponsored-retirement-plan.asp)\n5. [Must-Know Rules for Converting Your 401(k) to a Roth IRA](https:\/\/www.investopedia.com\/articles\/retirement\/08\/convert-401k-roth.asp)\n6. [What Are the Risks of Rolling My 401(k) Into an Annuity](https:\/\/www.investopedia.com\/ask\/answers\/093015\/what-are-risks-rolling-my-401k-annuity.asp)\n\n![Asian middle-aged woman with glasses studying laptop and paperwork.](https:\/\/www.investopedia.com\/thmb\/yoe9HtQmmBrlECMQWb0OE04cwJI=\/1500x0\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BongkarnThanyakij-03882e75597b487e8898fa962f183ef3.jpg)\n\n![Asian middle-aged woman with glasses studying laptop and paperwork.](https:\/\/www.investopedia.com\/thmb\/yoe9HtQmmBrlECMQWb0OE04cwJI=\/1500x0\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BongkarnThanyakij-03882e75597b487e8898fa962f183ef3.jpg)\n\nBongkarnThanyakij \/ Getty Images\n\nClose\n\nIf your employer offers a [401(k) plan](https:\/\/www.investopedia.com\/terms\/1\/401kplan.asp), this can be a very effective way of saving for retirement. The money that you put in your plan is tax-deferred, so you won’t pay income tax on it for the year when you earn it. Instead, you’ll be [taxed when you take it out](https:\/\/www.investopedia.com\/articles\/personal-finance\/061915\/how-your-401k-taxed-when-you-retire.asp) of your 401(k) account during retirement. Since most people are in a lower tax bracket in retirement than they are when they are working, this can save you a lot of money.\n\nThere are [annual limits](https:\/\/www.investopedia.com\/retirement\/401k-contribution-limits\/) on how much you can contribute to your 401(k) account, and people aged 50 and older can make additional [catch-up contributions](https:\/\/www.investopedia.com\/terms\/c\/catchupcontribution.asp). Those aged 60 to 63 are allowed even higher catch-up contributions.\n\nMaking these catch-up contributions can make all the difference when it comes to retiring comfortably. In this article, we’ll explain how you can make them and why you should.\n\n### Key Takeaways\n- Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers.\n- If you are already making the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes.\n- However, the majority of workers simply do not earn enough to be able to contribute the maximum amounts.\n\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\n\nASK\n## Understanding Catch-Up Contributions\nThere are annual limits to how much you can contribute to your 401(k). These limits increase every year to account for inflation. This limit applies across all 401(k) plans you have, including any [Roth 401(k)](https:\/\/www.investopedia.com\/terms\/r\/roth401k.asp) accounts. It includes all elective employee salary deferrals and any after-tax contributions made to a designated Roth account within your 401(k) or a special Roth 401(k) plan.\n\nThe same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan (TSP). However, contributions that you make to any other type of retirement plan, such as a [traditional](https:\/\/www.investopedia.com\/terms\/i\/ira.asp) or [Roth individual retirement account (IRA)](https:\/\/www.investopedia.com\/terms\/r\/rothira.asp), don’t count toward the limit.\n\nThe only exception to this is once you reach 50 years old. At this point, to encourage workers nearing retirement to speed up their savings, the Internal Revenue Service (IRS) allows 401(k) participants ages 50 and older to make additional contributions beyond the standard contribution limit.\n\nThis is known as a catch-up contribution, and it applies from the start of the year to those turning 50 at any time during the year. So, even if you turn 50 on New Year’s Eve, you can still make this extra contribution for that tax year. For individuals aged 60 to 63, the IRS allows even higher catch-up contribution limits.\n\n### Important\nIf you are age 50 or older, you can make an additional contribution to your 401(k). This will save you tax in the short term, and it could make a big difference to the size of your portfolio by the time you retire.\n## Why You Should Make Catch-Up Contributions\nThere are several advantages to making catch-up contributions, and these are largely similar to the more general advantages of a 401(k) plan. By choosing to contribute more to your 401(k), you will further reduce your tax bill. If you are in a relatively high tax bracket, these savings can be significant.\n\nIn addition, if you start putting extra money into your 401(k) at age 50 and don’t retire until you are 65 or even older, it can boost the value of your retirement portfolio significantly.\n\nThat said, contributing the total allowable amount to a 401(k) is a stretch for many people. Even a worker earning a relatively generous salary would have to put aside a large portion of their income, and someone earning a low salary is unlikely to be able to put aside more than half of their income for retirement.\n\nIt is primarily workers with high incomes and large account balances who can make catch-up contributions, Vanguard has found.\n\nIn other words, if you are already earning a good salary, are on track with your other financial goals, and are bumping up against the 401(k) contribution limit, catch-up contributions can be great. The majority of workers, however, are simply not earning enough to take advantage of the increased limit.\n\n## What Is a 401(k) Catch-Up Contribution?\nWorkers aged 50 and older can make an additional annual contribution to their 401(k) plan, in addition to the standard limits. Those aged 60 to 63 can contribute even higher amounts.\n\n## What Is the Maximum 401(k) Catch-Up Contribution?\nThe IRS sets annual contribution limits for 401(k) plans, including for catch-up contributions. All contribution limits are adjusted annually to account for inflation. These numbers can be found on the IRS website.\n\n## Should I Make Catch-Up Contributions?\nIf you earn a good salary, are on track with your other financial goals, and can contribute additional amounts to your 401(k), you should. The more you can save, the better your financial health will be in retirement.\n## The Bottom Line\nWorkers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. Those aged 60 to 63 have even higher contribution limits.\n\nIf you already make the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. However, the majority of workers simply do not earn enough to be able to contribute the maximum amount.\n\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\n\nASK\n\nArticle Sources\n\nInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https:\/\/www.investopedia.com\/legal-4768893#EditorialPolicy)\n\n1. Internal Revenue Service. \"[401(k) Limit Increases to \\$23,500 for 2025, IRA Limit Remains \\$7,000](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000).\"\n2. Internal Revenue Service. “[Roth Comparison Chart](https:\/\/www.irs.gov\/retirement-plans\/roth-comparison-chart).”\n3. Internal Revenue Service. \"[How Much Salary Can You Defer if You’re Eligible for More than One Retirement Plan?](https:\/\/www.irs.gov\/retirement-plans\/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan)\"\n4. Internal Revenue Service. “[Issue Snapshot — 401(k) Plan Catch-up Contribution Eligibility](https:\/\/www.irs.gov\/retirement-plans\/401k-plan-catch-up-contribution-eligibility).”\n5. Vanguard. “[How America Saves 2024](https:\/\/institutional.vanguard.com\/content\/dam\/inst\/iig-transformation\/insights\/pdf\/2024\/has\/how_america_saves_report_2024.pdf),” Pages 5 & 44.\n\nCompare Accounts\n\nAdvertiser Disclosure\n\n×\n\nThe offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.\n\nPart of the Series\n\nStrategies to Maximize Your 401(k)\n\n[Best Strategies to Maximize Your 401(k)](https:\/\/www.investopedia.com\/articles\/personal-finance\/091515\/best-strategies-maximize-your-401k.asp)\n\nFees and Returns\n\n1. [What Return Rate Should I Expect on my 401(k) Returns](https:\/\/www.investopedia.com\/ask\/answers\/041015\/what-rate-return-should-i-expect-my-401k.asp)\n2. [401(k) Fees: Everything You Need to Know](https:\/\/www.investopedia.com\/articles\/personal-finance\/061913\/hidden-fees-401ks.asp)\n3. [Best Ways to Use Your 401(k) Without a Penalty](https:\/\/www.investopedia.com\/ask\/answers\/082015\/what-are-best-ways-use-your-401k-without-penalty.asp)\n4. [Income Limits for 401(k)s: Highly Compensated Employees](https:\/\/www.investopedia.com\/income-limits-401ks-highly-compensated-employees-5509365)\n5. [What to Do After You've Over-Contributed to Your 401(k)](https:\/\/www.investopedia.com\/ask\/answers\/158.asp)\n6. [Divorce and 401(k): What You Need to Know](https:\/\/www.investopedia.com\/divorce-and-401-k-5441868)\n\nRetirement and 401(k)s\n\n1. [Average 401(k) Balance by Age](https:\/\/www.investopedia.com\/articles\/personal-finance\/010616\/whats-average-401k-balance-age.asp)\n2. [How Do 401(k) Catch-Up Contributions Work?](https:\/\/www.investopedia.com\/401k-catch-up-contributions-5499024)\n   CURRENT ARTICLE\n3. [How 401(k) Works After Retirement](https:\/\/www.investopedia.com\/articles\/personal-finance\/111615\/how-401k-works-after-retirement.asp)\n4. [401(k) Taxes When You Retire](https:\/\/www.investopedia.com\/articles\/personal-finance\/061915\/how-your-401k-taxed-when-you-retire.asp)\n5. [Can Your 401(k) Impact Your Social Security Benefits?](https:\/\/www.investopedia.com\/articles\/personal-finance\/103015\/can-your-401k-impact-your-social-security-benefits.asp)\n\nOther Types of 401(k)s and Retirement Plans\n\n1. [401(k) Self-Directed Brokerage Accounts](https:\/\/www.investopedia.com\/articles\/personal-finance\/061314\/rise-401k-brokerage-accounts.asp)\n2. [What is a Solo 401(k) or Self-Employed 401(k)?](https:\/\/www.investopedia.com\/ask\/answers\/100314\/do-i-need-employer-set-401k-plan.asp)\n3. [SIMPLE 401(k) Plans](https:\/\/www.investopedia.com\/articles\/retirement\/04\/052604.asp)\n4. [Can I Fund a Roth IRA and Contribute to My Employer's Retirement Plan?](https:\/\/www.investopedia.com\/ask\/answers\/081414\/can-i-contribute-roth-ira-and-still-participate-my-employersponsored-retirement-plan.asp)\n5. [Must-Know Rules for Converting Your 401(k) to a Roth IRA](https:\/\/www.investopedia.com\/articles\/retirement\/08\/convert-401k-roth.asp)\n6. [What Are the Risks of Rolling My 401(k) Into an Annuity](https:\/\/www.investopedia.com\/ask\/answers\/093015\/what-are-risks-rolling-my-401k-annuity.asp)\n\nRead more\n\n- [Personal Finance](https:\/\/www.investopedia.com\/personal-finance-4427760)\n- [Retirement Planning](https:\/\/www.investopedia.com\/retirement-planning-4689695)\n- [401(k)](https:\/\/www.investopedia.com\/401k-4689694)\n\nPartner Links\n\nTake the Next Step to Invest\n\nAdvertiser Disclosure\n\n×\n\nThe offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. 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Up","attrs_readable_markdown":"If your employer offers a [401(k) plan](https:\/\/www.investopedia.com\/terms\/1\/401kplan.asp), this can be a very effective way of saving for retirement. The money that you put in your plan is tax-deferred, so you won’t pay income tax on it for the year when you earn it. Instead, you’ll be [taxed when you take it out](https:\/\/www.investopedia.com\/articles\/personal-finance\/061915\/how-your-401k-taxed-when-you-retire.asp) of your 401(k) account during retirement. Since most people are in a lower tax bracket in retirement than they are when they are working, this can save you a lot of money.\n\nThere are [annual limits](https:\/\/www.investopedia.com\/retirement\/401k-contribution-limits\/) on how much you can contribute to your 401(k) account, and people aged 50 and older can make additional [catch-up contributions](https:\/\/www.investopedia.com\/terms\/c\/catchupcontribution.asp). Those aged 60 to 63 are allowed even higher catch-up contributions.\n\nMaking these catch-up contributions can make all the difference when it comes to retiring comfortably. In this article, we’ll explain how you can make them and why you should.\n\n### Key Takeaways\n- Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers.\n- If you are already making the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes.\n- However, the majority of workers simply do not earn enough to be able to contribute the maximum amounts.\n\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\n## Understanding Catch-Up Contributions\nThere are annual limits to how much you can contribute to your 401(k). These limits increase every year to account for inflation. This limit applies across all 401(k) plans you have, including any [Roth 401(k)](https:\/\/www.investopedia.com\/terms\/r\/roth401k.asp) accounts. It includes all elective employee salary deferrals and any after-tax contributions made to a designated Roth account within your 401(k) or a special Roth 401(k) plan.\n\nThe same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan (TSP). However, contributions that you make to any other type of retirement plan, such as a [traditional](https:\/\/www.investopedia.com\/terms\/i\/ira.asp) or [Roth individual retirement account (IRA)](https:\/\/www.investopedia.com\/terms\/r\/rothira.asp), don’t count toward the limit.\n\nThe only exception to this is once you reach 50 years old. At this point, to encourage workers nearing retirement to speed up their savings, the Internal Revenue Service (IRS) allows 401(k) participants ages 50 and older to make additional contributions beyond the standard contribution limit.\n\nThis is known as a catch-up contribution, and it applies from the start of the year to those turning 50 at any time during the year. So, even if you turn 50 on New Year’s Eve, you can still make this extra contribution for that tax year. For individuals aged 60 to 63, the IRS allows even higher catch-up contribution limits.\n\n### Important\nIf you are age 50 or older, you can make an additional contribution to your 401(k). This will save you tax in the short term, and it could make a big difference to the size of your portfolio by the time you retire.\n## Why You Should Make Catch-Up Contributions\nThere are several advantages to making catch-up contributions, and these are largely similar to the more general advantages of a 401(k) plan. By choosing to contribute more to your 401(k), you will further reduce your tax bill. If you are in a relatively high tax bracket, these savings can be significant.\n\nIn addition, if you start putting extra money into your 401(k) at age 50 and don’t retire until you are 65 or even older, it can boost the value of your retirement portfolio significantly.\n\nThat said, contributing the total allowable amount to a 401(k) is a stretch for many people. Even a worker earning a relatively generous salary would have to put aside a large portion of their income, and someone earning a low salary is unlikely to be able to put aside more than half of their income for retirement.\n\nIt is primarily workers with high incomes and large account balances who can make catch-up contributions, Vanguard has found.\n\nIn other words, if you are already earning a good salary, are on track with your other financial goals, and are bumping up against the 401(k) contribution limit, catch-up contributions can be great. The majority of workers, however, are simply not earning enough to take advantage of the increased limit.\n\n## What Is a 401(k) Catch-Up Contribution?\nWorkers aged 50 and older can make an additional annual contribution to their 401(k) plan, in addition to the standard limits. Those aged 60 to 63 can contribute even higher amounts.\n\n## What Is the Maximum 401(k) Catch-Up Contribution?\nThe IRS sets annual contribution limits for 401(k) plans, including for catch-up contributions. All contribution limits are adjusted annually to account for inflation. These numbers can be found on the IRS website.\n\n## Should I Make Catch-Up Contributions?\nIf you earn a good salary, are on track with your other financial goals, and can contribute additional amounts to your 401(k), you should. The more you can save, the better your financial health will be in retirement.\n## The Bottom Line\nWorkers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. Those aged 60 to 63 have even higher contribution limits.\n\nIf you already make the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. However, the majority of workers simply do not earn enough to be able to contribute the maximum amount.","meta_canonical":null}

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Meta Description	You can contribute more to your 401(k) once you reach age 50. In this article, we’ll explain how these catch-up contributions work.
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Boilerpipe Text	If your employer offers a 401(k) plan , this can be a very effective way of saving for retirement. The money that you put in your plan is tax-deferred, so you won’t pay income tax on it for the year when you earn it. Instead, you’ll be taxed when you take it out of your 401(k) account during retirement. Since most people are in a lower tax bracket in retirement than they are when they are working, this can save you a lot of money. There are annual limits on how much you can contribute to your 401(k) account, and people aged 50 and older can make additional catch-up contributions . Those aged 60 to 63 are allowed even higher catch-up contributions. Making these catch-up contributions can make all the difference when it comes to retiring comfortably. In this article, we’ll explain how you can make them and why you should. Key Takeaways Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. If you are already making the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. However, the majority of workers simply do not earn enough to be able to contribute the maximum amounts. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Understanding Catch-Up Contributions There are annual limits to how much you can contribute to your 401(k). These limits increase every year to account for inflation. This limit applies across all 401(k) plans you have, including any Roth 401(k) accounts. It includes all elective employee salary deferrals and any after-tax contributions made to a designated Roth account within your 401(k) or a special Roth 401(k) plan. The same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan (TSP). However, contributions that you make to any other type of retirement plan, such as a traditional or Roth individual retirement account (IRA) , don’t count toward the limit. The only exception to this is once you reach 50 years old. At this point, to encourage workers nearing retirement to speed up their savings, the Internal Revenue Service (IRS) allows 401(k) participants ages 50 and older to make additional contributions beyond the standard contribution limit. This is known as a catch-up contribution, and it applies from the start of the year to those turning 50 at any time during the year. So, even if you turn 50 on New Year’s Eve, you can still make this extra contribution for that tax year. For individuals aged 60 to 63, the IRS allows even higher catch-up contribution limits. Important If you are age 50 or older, you can make an additional contribution to your 401(k). This will save you tax in the short term, and it could make a big difference to the size of your portfolio by the time you retire. Why You Should Make Catch-Up Contributions There are several advantages to making catch-up contributions, and these are largely similar to the more general advantages of a 401(k) plan. By choosing to contribute more to your 401(k), you will further reduce your tax bill. If you are in a relatively high tax bracket, these savings can be significant. In addition, if you start putting extra money into your 401(k) at age 50 and don’t retire until you are 65 or even older, it can boost the value of your retirement portfolio significantly. That said, contributing the total allowable amount to a 401(k) is a stretch for many people. Even a worker earning a relatively generous salary would have to put aside a large portion of their income, and someone earning a low salary is unlikely to be able to put aside more than half of their income for retirement. It is primarily workers with high incomes and large account balances who can make catch-up contributions, Vanguard has found. In other words, if you are already earning a good salary, are on track with your other financial goals, and are bumping up against the 401(k) contribution limit, catch-up contributions can be great. The majority of workers, however, are simply not earning enough to take advantage of the increased limit. What Is a 401(k) Catch-Up Contribution? Workers aged 50 and older can make an additional annual contribution to their 401(k) plan, in addition to the standard limits. Those aged 60 to 63 can contribute even higher amounts. What Is the Maximum 401(k) Catch-Up Contribution? The IRS sets annual contribution limits for 401(k) plans, including for catch-up contributions. All contribution limits are adjusted annually to account for inflation. These numbers can be found on the IRS website. Should I Make Catch-Up Contributions? If you earn a good salary, are on track with your other financial goals, and can contribute additional amounts to your 401(k), you should. The more you can save, the better your financial health will be in retirement. The Bottom Line Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. Those aged 60 to 63 have even higher contribution limits. If you already make the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. However, the majority of workers simply do not earn enough to be able to contribute the maximum amount.
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[Best CD Rates](https://www.investopedia.com/best-cd-rates-4770214) - [Best Life Insurance](https://www.investopedia.com/the-best-life-insurance-companies-8763666) - [Best Mortgage Rates](https://www.investopedia.com/mortgage-rates-5094943) - [Best Robo-Advisors](https://www.investopedia.com/the-best-robo-advisors-8764849) - [Best Personal Loans](https://www.investopedia.com/the-best-personal-loans-8761582) - [Best Debt Relief Companies](https://www.investopedia.com/the-best-debt-relief-companies-8763179) - [View All](https://www.investopedia.com/financial-product-reviews-7110783) Table of Contents Expand Table of Contents - [How Catch-Up Contributions Work](https://www.investopedia.com/401k-catch-up-contributions-5499024#toc-understanding-catch-up-contributions) - [Why Make Catch-Up Contributions](https://www.investopedia.com/401k-catch-up-contributions-5499024#toc-why-you-should-make-catch-up-contributions) - [FAQs](https://www.investopedia.com/401k-catch-up-contributions-5499024#toc-what-is-a-401k-catch-up-contribution) - [The Bottom Line](https://www.investopedia.com/401k-catch-up-contributions-5499024#toc-the-bottom-line) # How Do 401(k) Catch-Up Contributions Work? You can contribute more to your 401(k) beginning at age 50 By [Matt Ryan Webber](https://www.investopedia.com/matt-ryan-webber-5202417) ![Matt Ryan Webber]() ![Matt Ryan Webber](https://www.investopedia.com/thmb/uxIErgqhrClHCVVTAeQCuMrVzLs=/200x200/filters:no_upscale:max_bytes$150000$:strip_icc/smda1_crop-f0c167dd2b2144f68f352c63d17f7db5.jpg) [Full Bio](https://www.investopedia.com/matt-ryan-webber-5202417) Matt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture. Learn about our [editorial policies](https://www.investopedia.com/legal-4768893#editorial-policy) Updated September 10, 2025 Reviewed by [Khadija Khartit](https://www.investopedia.com/khadija-khartit-4799776) ![Khadija Khartit]() ![Khadija Khartit](https://www.investopedia.com/thmb/W2re2_rNx_MIW9RPQv9BMFNHVH4=/200x200/filters:no_upscale:max_bytes$150000$:strip_icc/Pic1-KhadijaKhartit-cc5b57fba2bd46ed87bdb3ddbcd2ef69.jpg) Reviewed by Khadija Khartit [Full Bio](https://www.investopedia.com/khadija-khartit-4799776) Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder. Learn about our [Financial Review Board](https://www.investopedia.com/investopedia-financial-review-board-5076269) Fact checked by [Vikki Velasquez](https://www.investopedia.com/vikki-velasquez-5198872) ![Vikkie Velasquez]() ![Vikkie Velasquez](https://www.investopedia.com/thmb/qsiqwN4603qvBBcEmwBBFAZ7h-8=/200x200/filters:no_upscale:max_bytes$150000$:strip_icc/vikki-velasquez-investopedia-portrait-1-18b989d75f1f4d6d9b5b3a47cb3ffc5f.jpg) Fact checked by Vikki Velasquez [Full Bio](https://www.investopedia.com/vikki-velasquez-5198872) Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area. Learn about our [editorial policies](https://www.investopedia.com/legal-4768893#editorial-policy) Part of the Series Strategies to Maximize Your 401(k) [Best Strategies to Maximize Your 401(k)](https://www.investopedia.com/articles/personal-finance/091515/best-strategies-maximize-your-401k.asp) Fees and Returns 1. [What Return Rate Should I Expect on my 401(k) Returns](https://www.investopedia.com/ask/answers/041015/what-rate-return-should-i-expect-my-401k.asp) 2. [401(k) Fees: Everything You Need to Know](https://www.investopedia.com/articles/personal-finance/061913/hidden-fees-401ks.asp) 3. [Best Ways to Use Your 401(k) Without a Penalty](https://www.investopedia.com/ask/answers/082015/what-are-best-ways-use-your-401k-without-penalty.asp) 4. [Income Limits for 401(k)s: Highly Compensated Employees](https://www.investopedia.com/income-limits-401ks-highly-compensated-employees-5509365) 5. [What to Do After You've Over-Contributed to Your 401(k)](https://www.investopedia.com/ask/answers/158.asp) 6. [Divorce and 401(k): What You Need to Know](https://www.investopedia.com/divorce-and-401-k-5441868) Retirement and 401(k)s 1. [Average 401(k) Balance by Age](https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp) 2. [How Do 401(k) Catch-Up Contributions Work?](https://www.investopedia.com/401k-catch-up-contributions-5499024) CURRENT ARTICLE 3. [How 401(k) Works After Retirement](https://www.investopedia.com/articles/personal-finance/111615/how-401k-works-after-retirement.asp) 4. [401(k) Taxes When You Retire](https://www.investopedia.com/articles/personal-finance/061915/how-your-401k-taxed-when-you-retire.asp) 5. [Can Your 401(k) Impact Your Social Security Benefits?](https://www.investopedia.com/articles/personal-finance/103015/can-your-401k-impact-your-social-security-benefits.asp) Other Types of 401(k)s and Retirement Plans 1. [401(k) Self-Directed Brokerage Accounts](https://www.investopedia.com/articles/personal-finance/061314/rise-401k-brokerage-accounts.asp) 2. [What is a Solo 401(k) or Self-Employed 401(k)?](https://www.investopedia.com/ask/answers/100314/do-i-need-employer-set-401k-plan.asp) 3. [SIMPLE 401(k) Plans](https://www.investopedia.com/articles/retirement/04/052604.asp) 4. [Can I Fund a Roth IRA and Contribute to My Employer's Retirement Plan?](https://www.investopedia.com/ask/answers/081414/can-i-contribute-roth-ira-and-still-participate-my-employersponsored-retirement-plan.asp) 5. [Must-Know Rules for Converting Your 401(k) to a Roth IRA](https://www.investopedia.com/articles/retirement/08/convert-401k-roth.asp) 6. [What Are the Risks of Rolling My 401(k) Into an Annuity](https://www.investopedia.com/ask/answers/093015/what-are-risks-rolling-my-401k-annuity.asp) ![Asian middle-aged woman with glasses studying laptop and paperwork.](https://www.investopedia.com/thmb/yoe9HtQmmBrlECMQWb0OE04cwJI=/1500x0/filters:no_upscale:max_bytes$150000$:strip_icc/BongkarnThanyakij-03882e75597b487e8898fa962f183ef3.jpg) ![Asian middle-aged woman with glasses studying laptop and paperwork.](https://www.investopedia.com/thmb/yoe9HtQmmBrlECMQWb0OE04cwJI=/1500x0/filters:no_upscale:max_bytes$150000$:strip_icc/BongkarnThanyakij-03882e75597b487e8898fa962f183ef3.jpg) BongkarnThanyakij / Getty Images Close If your employer offers a [401(k) plan](https://www.investopedia.com/terms/1/401kplan.asp), this can be a very effective way of saving for retirement. The money that you put in your plan is tax-deferred, so you won’t pay income tax on it for the year when you earn it. Instead, you’ll be [taxed when you take it out](https://www.investopedia.com/articles/personal-finance/061915/how-your-401k-taxed-when-you-retire.asp) of your 401(k) account during retirement. Since most people are in a lower tax bracket in retirement than they are when they are working, this can save you a lot of money. There are [annual limits](https://www.investopedia.com/retirement/401k-contribution-limits/) on how much you can contribute to your 401(k) account, and people aged 50 and older can make additional [catch-up contributions](https://www.investopedia.com/terms/c/catchupcontribution.asp). Those aged 60 to 63 are allowed even higher catch-up contributions. Making these catch-up contributions can make all the difference when it comes to retiring comfortably. In this article, we’ll explain how you can make them and why you should. ### Key Takeaways - Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. - If you are already making the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. - However, the majority of workers simply do not earn enough to be able to contribute the maximum amounts. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ASK ## Understanding Catch-Up Contributions There are annual limits to how much you can contribute to your 401(k). These limits increase every year to account for inflation. This limit applies across all 401(k) plans you have, including any [Roth 401(k)](https://www.investopedia.com/terms/r/roth401k.asp) accounts. It includes all elective employee salary deferrals and any after-tax contributions made to a designated Roth account within your 401(k) or a special Roth 401(k) plan. The same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan (TSP). However, contributions that you make to any other type of retirement plan, such as a [traditional](https://www.investopedia.com/terms/i/ira.asp) or [Roth individual retirement account (IRA)](https://www.investopedia.com/terms/r/rothira.asp), don’t count toward the limit. The only exception to this is once you reach 50 years old. At this point, to encourage workers nearing retirement to speed up their savings, the Internal Revenue Service (IRS) allows 401(k) participants ages 50 and older to make additional contributions beyond the standard contribution limit. This is known as a catch-up contribution, and it applies from the start of the year to those turning 50 at any time during the year. So, even if you turn 50 on New Year’s Eve, you can still make this extra contribution for that tax year. For individuals aged 60 to 63, the IRS allows even higher catch-up contribution limits. ### Important If you are age 50 or older, you can make an additional contribution to your 401(k). This will save you tax in the short term, and it could make a big difference to the size of your portfolio by the time you retire. ## Why You Should Make Catch-Up Contributions There are several advantages to making catch-up contributions, and these are largely similar to the more general advantages of a 401(k) plan. By choosing to contribute more to your 401(k), you will further reduce your tax bill. If you are in a relatively high tax bracket, these savings can be significant. In addition, if you start putting extra money into your 401(k) at age 50 and don’t retire until you are 65 or even older, it can boost the value of your retirement portfolio significantly. That said, contributing the total allowable amount to a 401(k) is a stretch for many people. Even a worker earning a relatively generous salary would have to put aside a large portion of their income, and someone earning a low salary is unlikely to be able to put aside more than half of their income for retirement. It is primarily workers with high incomes and large account balances who can make catch-up contributions, Vanguard has found. In other words, if you are already earning a good salary, are on track with your other financial goals, and are bumping up against the 401(k) contribution limit, catch-up contributions can be great. The majority of workers, however, are simply not earning enough to take advantage of the increased limit. ## What Is a 401(k) Catch-Up Contribution? Workers aged 50 and older can make an additional annual contribution to their 401(k) plan, in addition to the standard limits. Those aged 60 to 63 can contribute even higher amounts. ## What Is the Maximum 401(k) Catch-Up Contribution? The IRS sets annual contribution limits for 401(k) plans, including for catch-up contributions. All contribution limits are adjusted annually to account for inflation. These numbers can be found on the IRS website. ## Should I Make Catch-Up Contributions? If you earn a good salary, are on track with your other financial goals, and can contribute additional amounts to your 401(k), you should. The more you can save, the better your financial health will be in retirement. ## The Bottom Line Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. Those aged 60 to 63 have even higher contribution limits. If you already make the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. However, the majority of workers simply do not earn enough to be able to contribute the maximum amount. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ASK Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https://www.investopedia.com/legal-4768893#EditorialPolicy) 1. Internal Revenue Service. "[401(k) Limit Increases to \$23,500 for 2025, IRA Limit Remains \$7,000](https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000)." 2. Internal Revenue Service. “[Roth Comparison Chart](https://www.irs.gov/retirement-plans/roth-comparison-chart).” 3. Internal Revenue Service. "[How Much Salary Can You Defer if You’re Eligible for More than One Retirement Plan?](https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan)" 4. Internal Revenue Service. “[Issue Snapshot — 401(k) Plan Catch-up Contribution Eligibility](https://www.irs.gov/retirement-plans/401k-plan-catch-up-contribution-eligibility).” 5. Vanguard. “[How America Saves 2024](https://institutional.vanguard.com/content/dam/inst/iig-transformation/insights/pdf/2024/has/how_america_saves_report_2024.pdf),” Pages 5 & 44. Compare Accounts Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Part of the Series Strategies to Maximize Your 401(k) [Best Strategies to Maximize Your 401(k)](https://www.investopedia.com/articles/personal-finance/091515/best-strategies-maximize-your-401k.asp) Fees and Returns 1. [What Return Rate Should I Expect on my 401(k) Returns](https://www.investopedia.com/ask/answers/041015/what-rate-return-should-i-expect-my-401k.asp) 2. [401(k) Fees: Everything You Need to Know](https://www.investopedia.com/articles/personal-finance/061913/hidden-fees-401ks.asp) 3. [Best Ways to Use Your 401(k) Without a Penalty](https://www.investopedia.com/ask/answers/082015/what-are-best-ways-use-your-401k-without-penalty.asp) 4. [Income Limits for 401(k)s: Highly Compensated Employees](https://www.investopedia.com/income-limits-401ks-highly-compensated-employees-5509365) 5. [What to Do After You've Over-Contributed to Your 401(k)](https://www.investopedia.com/ask/answers/158.asp) 6. [Divorce and 401(k): What You Need to Know](https://www.investopedia.com/divorce-and-401-k-5441868) Retirement and 401(k)s 1. [Average 401(k) Balance by Age](https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp) 2. [How Do 401(k) Catch-Up Contributions Work?](https://www.investopedia.com/401k-catch-up-contributions-5499024) CURRENT ARTICLE 3. [How 401(k) Works After Retirement](https://www.investopedia.com/articles/personal-finance/111615/how-401k-works-after-retirement.asp) 4. [401(k) Taxes When You Retire](https://www.investopedia.com/articles/personal-finance/061915/how-your-401k-taxed-when-you-retire.asp) 5. [Can Your 401(k) Impact Your Social Security Benefits?](https://www.investopedia.com/articles/personal-finance/103015/can-your-401k-impact-your-social-security-benefits.asp) Other Types of 401(k)s and Retirement Plans 1. [401(k) Self-Directed Brokerage Accounts](https://www.investopedia.com/articles/personal-finance/061314/rise-401k-brokerage-accounts.asp) 2. [What is a Solo 401(k) or Self-Employed 401(k)?](https://www.investopedia.com/ask/answers/100314/do-i-need-employer-set-401k-plan.asp) 3. [SIMPLE 401(k) Plans](https://www.investopedia.com/articles/retirement/04/052604.asp) 4. [Can I Fund a Roth IRA and Contribute to My Employer's Retirement Plan?](https://www.investopedia.com/ask/answers/081414/can-i-contribute-roth-ira-and-still-participate-my-employersponsored-retirement-plan.asp) 5. [Must-Know Rules for Converting Your 401(k) to a Roth IRA](https://www.investopedia.com/articles/retirement/08/convert-401k-roth.asp) 6. [What Are the Risks of Rolling My 401(k) Into an Annuity](https://www.investopedia.com/ask/answers/093015/what-are-risks-rolling-my-401k-annuity.asp) Read more - [Personal Finance](https://www.investopedia.com/personal-finance-4427760) - [Retirement Planning](https://www.investopedia.com/retirement-planning-4689695) - [401(k)](https://www.investopedia.com/401k-4689694) Partner Links Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. 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Readable Markdown	If your employer offers a [401(k) plan](https://www.investopedia.com/terms/1/401kplan.asp), this can be a very effective way of saving for retirement. The money that you put in your plan is tax-deferred, so you won’t pay income tax on it for the year when you earn it. Instead, you’ll be [taxed when you take it out](https://www.investopedia.com/articles/personal-finance/061915/how-your-401k-taxed-when-you-retire.asp) of your 401(k) account during retirement. Since most people are in a lower tax bracket in retirement than they are when they are working, this can save you a lot of money. There are [annual limits](https://www.investopedia.com/retirement/401k-contribution-limits/) on how much you can contribute to your 401(k) account, and people aged 50 and older can make additional [catch-up contributions](https://www.investopedia.com/terms/c/catchupcontribution.asp). Those aged 60 to 63 are allowed even higher catch-up contributions. Making these catch-up contributions can make all the difference when it comes to retiring comfortably. In this article, we’ll explain how you can make them and why you should. ### Key Takeaways - Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. - If you are already making the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. - However, the majority of workers simply do not earn enough to be able to contribute the maximum amounts. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ## Understanding Catch-Up Contributions There are annual limits to how much you can contribute to your 401(k). These limits increase every year to account for inflation. This limit applies across all 401(k) plans you have, including any [Roth 401(k)](https://www.investopedia.com/terms/r/roth401k.asp) accounts. It includes all elective employee salary deferrals and any after-tax contributions made to a designated Roth account within your 401(k) or a special Roth 401(k) plan. The same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan (TSP). However, contributions that you make to any other type of retirement plan, such as a [traditional](https://www.investopedia.com/terms/i/ira.asp) or [Roth individual retirement account (IRA)](https://www.investopedia.com/terms/r/rothira.asp), don’t count toward the limit. The only exception to this is once you reach 50 years old. At this point, to encourage workers nearing retirement to speed up their savings, the Internal Revenue Service (IRS) allows 401(k) participants ages 50 and older to make additional contributions beyond the standard contribution limit. This is known as a catch-up contribution, and it applies from the start of the year to those turning 50 at any time during the year. So, even if you turn 50 on New Year’s Eve, you can still make this extra contribution for that tax year. For individuals aged 60 to 63, the IRS allows even higher catch-up contribution limits. ### Important If you are age 50 or older, you can make an additional contribution to your 401(k). This will save you tax in the short term, and it could make a big difference to the size of your portfolio by the time you retire. ## Why You Should Make Catch-Up Contributions There are several advantages to making catch-up contributions, and these are largely similar to the more general advantages of a 401(k) plan. By choosing to contribute more to your 401(k), you will further reduce your tax bill. If you are in a relatively high tax bracket, these savings can be significant. In addition, if you start putting extra money into your 401(k) at age 50 and don’t retire until you are 65 or even older, it can boost the value of your retirement portfolio significantly. That said, contributing the total allowable amount to a 401(k) is a stretch for many people. Even a worker earning a relatively generous salary would have to put aside a large portion of their income, and someone earning a low salary is unlikely to be able to put aside more than half of their income for retirement. It is primarily workers with high incomes and large account balances who can make catch-up contributions, Vanguard has found. In other words, if you are already earning a good salary, are on track with your other financial goals, and are bumping up against the 401(k) contribution limit, catch-up contributions can be great. The majority of workers, however, are simply not earning enough to take advantage of the increased limit. ## What Is a 401(k) Catch-Up Contribution? Workers aged 50 and older can make an additional annual contribution to their 401(k) plan, in addition to the standard limits. Those aged 60 to 63 can contribute even higher amounts. ## What Is the Maximum 401(k) Catch-Up Contribution? The IRS sets annual contribution limits for 401(k) plans, including for catch-up contributions. All contribution limits are adjusted annually to account for inflation. These numbers can be found on the IRS website. ## Should I Make Catch-Up Contributions? If you earn a good salary, are on track with your other financial goals, and can contribute additional amounts to your 401(k), you should. The more you can save, the better your financial health will be in retirement. ## The Bottom Line Workers ages 50 and older have a higher annual 401(k) contribution limit than their younger peers. Those aged 60 to 63 have even higher contribution limits. If you already make the maximum contribution to your 401(k) and can afford to increase this, making catch-up contributions can save you a significant amount of money in taxes. However, the majority of workers simply do not earn enough to be able to contribute the maximum amount.
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