Workers aged 60 to 63 can now contribute up to $11,250 in catch-up contributions to their 401(k) plans for 2026, up from the standard catch-up limit of $7,500 for those aged 50 and older. The enhanced limit was established under the SECURE 2.0 Act to help older workers accelerate their retirement savings.
Financial planners emphasize that maximizing catch-up contributions can significantly boost retirement readiness, particularly for workers who started saving later in their careers. The additional tax-deferred growth can translate to tens of thousands of dollars in additional retirement income.
Employers are updating their payroll systems to accommodate the new tiered contribution structure and ensure eligible participants can take full advantage.
