How Ages 60 to 63 Can Use the Super Catch-Up Contribution Before 2026 Ends

One relatively easy way to save for retirement is to fund an IRA or 401(k) steadily over time. If you begin contributing to a retirement account in your 20s and do so through your 60s, you could end up with a lot of money -- even if you're only putting in a small amount every month.

But some people don't start saving in an IRA or 401(k) in their 20s, or even their 30s or 40s. And so inevitably, they reach their 50s feeling like they're behind.

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That's what makes catch-up contributions so valuable. Catch-up contributions are available in both IRAs and 401(k)s, and they apply to workers ages 50 and over.

You don't have to be "behind" on savings to make catch-up contributions. It's not as though they're only available to people whose balances are below a certain threshold. Rather, once you turn 50, you can put that extra money into your retirement plan and enjoy a tax break along the way.

But while anyone 50 and over can benefit from catch-up contributions, there's a special 401(k) catch-up available this year for savers between the specific ages of 60 and 63. And it's an option you may want to take advantage of.

How the 401(k) super catch-up works

Workers 50 and over are allowed to put an extra $8,000 into their 401(k)s this year. But if you're between the ages of 60 and 63, instead of that $8,000 catch-up, you can make a catch-up contribution of $11,250. That brings your total allowable 401(k) contribution to $35,750.

Why it matters

The timing of the 401(k) super catch-up is intentional. Many people end up reaching their peak earnings years in the period leading up to retirement. And by your early 60s, you may be looking at fewer expenses, especially if your kids have grown up and moved out of the house or you're done paying for college.

If you can spare the money, that super catch-up could give your 401(k) the boost it needs to go further in retirement. And it's especially worth making that super catch-up if you aren't thrilled with your 401(k) balance and would love to see it grow faster.

Also, if you're not planning to retire for a good number of years, that super catch-up could be even more valuable. Say you're 60 but you don't plan to retire until 68. If you put an additional $11,250 into your 401(k) now and that sum grows at a conservative 5% annually over the next eight years, it'll result in an additional $16,600.

That's obviously not a huge gain. But a $5,000 gain in under a decade could pay for a nice trip early on in retirement or a home upgrade you've been putting off.

It pays to make that catch-up even if your savings are strong

The 401(k) super catch-up is worth prioritizing if your retirement savings aren't in the best shape. But even if you're sitting on millions, it could still pay to make that extra contribution if you can swing it.

Contributions to a traditional 401(k) go in tax-free, so by making that super catch-up, you can shield more income from the IRS. And if you're saving in a Roth 401(k), you'll have that much more money in your account to grow tax-free.

An option worth taking advantage of

All told, the super catch-up gives workers in their early 60s a rare opportunity to accelerate retirement savings during a critical financial window. Whether you're happy with your 401(k) at that stage or not, it's a good idea to consider making a super catch-up if you have the ability to do so.

If it's the first year you're eligible, all you really need to know is that the extra money has to land in your 401(k) by Dec. 31 to count as a 2026 contribution. So you have plenty of time to fill out the right paperwork and arrange for that to happen.

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