Super Catch-Up Contribution

Historically, beginning in the calendar year you turn age 50, you are eligible to make a catch-up contribution ($8,000 for 2026) in addition to the standard 401(k) limit ($24,500 for 2026).  Under new law, beginning in the calendar year you reach age 60, the standard catch-up limit is increased by 50% ($11,250 instead of $8,000).  The enhanced limit is allowed for the calendar years you reach age 60, 61, 62 and 63.  It is no longer available in the calendar year you reach age 64 and is then reduced back to the standard limit each year thereafter.  Examples based on the 2026 limit of $8,000:

Example 1:  If you are at least age 50 at anytime during 2026 and will not reach age 60 in 2026, your catch-up limit for 2026 is $8,000.

Example 2:  If you are at least age 60 or will reach age 60 at any time in 2026, your catch-up limit for 2026 is $11,250.

Example 3:  If you are age 63 at the beginning of 2026 but will turn age 64 at any time in 2026, your catch-up limit for 2026 is $8,000.

The enhanced catch-up limit will be indexed for cost of living each year along with the standard 401(k) and catch-up limits.

For more information contact us at rpamatters@retirementplanners.com.