Super Catch-up 401(k) Contributions: Are You Eligible to Make Them?

Key Points – Super Catch-up 401(k) Contributions: Are You Eligible to Make Them?

What Are Super Catch-up 401(k) Contributions?
A New Opportunity to Save More as You Near Retirement
Maximizing Contributions to Your Workplace Retirement Plan
A Catch-up and Super Catch-up 401(k) Contributions Case Study
How Another SECURE Act 2.0 Provision Will Impact Catch-up and Super Catch-up Contributions Starting in 2026
3-Minute Read

What Are Super Catch-up 401(k) Contributions?

If you’re 50 or older and are still working, have you been making catch-up contributions to your 401(k), 403(b), 457, or Thrift Savings Plan? For 2026, the maximum contribution that individuals 50 and older can make to their workplace retirement plan is $32,500 ($24,500 contribution + $8,000 maximum catch-up contribution). However, if you turn 60, 61, 62, or 63 by the end of 2026, you can contribute even more than that by making super catch-up contributions.

The opportunity to make super catch-up 401(k) contributions began on January 1, 2025, following a new SECURE Act 2.0 provision. If you turn 60-63 by the end of 2026, you can contribute up to an additional $11,250 instead of $8,000. Let’s look at how much more someone can potentially save for retirement by maximizing contributions to their workplace retirement plan, including catch-up and super catch-up contributions.

A Super Catch-up 401(k) Contributions Case Study

In this short case study, this individual has saved $500,000 to their 401(k) by the time they’ve reached age 50. If they make a full contribution of $24,500 and get an 8% rate of return that amounts to $40,000 ($500,000 x 0.08), they’ll have $564,500 in their 401(k) by age 51. However, that’s before making a catch-up contribution that they’re now eligible for in the year they turn 50. If they make an $8,000 catch-up contribution, that total increases to $572,500. Think about how much you can potentially increase your 401(k) savings by following these steps each year as you approach retirement.

Keep in mind that these contribution limits are indexed for inflation, so the $24,500 and $8,000 limits will likely change as this individual gets older. We’re still going use those totals, though, as we continue this case study just as a guideline.

Factoring in Super Catch-up 401(k) Contributions

This individual would potentially have $1,405,348 in the year that they turn 59 by contributing $32,500 a year ($24,500 + $8,000 catch-up) and getting an 8% rate of return. That sets the stage for this individual to begin making super catch-up 401(k) contributions in the year they turn 60.

Over the next four years, they’ll be able contribute an additional $3,750 per year ($24,500 plus the $11,250 super catch-up). Suddenly, by the time they’ve reached 64, they’ve potentially increased their 401(k) savings to $2,310,331 by utilizing catch-up and super catch-up contributions.

Also, don’t forget to take advantage of your 401(k) employer match. Whether your employer matches dollar for dollar, a fraction of every dollar that you contribute, or a combination of the two, that’s free money from your employer just for saving for retirement.

Another SECURE Act 2.0 Provision Related to Catch-up Contributions

While SECURE 2.0 became law on January 1, 2023, there’s another provision that will go into effect regarding catch-up and super catch-up contributions starting in 2026.

Effective January 1, 2026, all catch-up and super catch-up contributions must be made to a designated Roth account if your wages exceed $150,000.

Should You Be Taking Advantage of Catch-up or Super Catch-up 401(k) Contributions?

Even if you’re not quite 50 and eligible to make catch-up contributions (or 60 to make super catch-up contributions), we want to make sure that you’re aware of these opportunities to save more for retirement. However, if you are eligible to make catch-up or super catch-up 401(k) contributions, don’t just assume that you should do so just because you can. Maybe you’ve already saved enough for retirement and need to start spending and enjoying your hard-earned wealth?

The begs the question, when is it time to stop saving for retirement? Let’s talk about it! Start a conversation with our team to not only learn more about whether catch-up and super catch-up contributions could make sense for you, but more importantly to build a comprehensive financial plan that’s tailored to your goals.

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We hope you’ve found this article on catch-up and super catch-up contributions to be informative and look forward to discussing your wealth management goals with you soon. It’s important to us that you’re able to enjoy today with confidence for tomorrow. Let’s make sure that you have a plan that’s connected to the people and things you care about most.

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The views expressed represent the opinion of Modern Wealth Management a Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.