A 62-year-old worker who maxes out her 401(k) in 2026 will be allowed to contribute $35,750, roughly $670 per week before her employer even chips in. That ceiling is $11,250 higher than what a colleague under 50 can defer and $3,250 above the limit for most other catch-up-eligible workers over 50. No other age group in America gets a number that large.
The super-sized catch-up comes from the SECURE 2.0 Act of 2022, which Congress designed to give workers closest to retirement one final push to build their nest eggs. The provision kicked in for the first time in 2025 and carries forward at the same dollar level into 2026. But the gap between the headline number and who can realistically use it is wider than most coverage lets on.
How the 2026 contribution limits break down
The IRS set the numbers in Notice 2025-67, published in Internal Revenue Bulletin 2025-49. The standard elective deferral limit for 401(k), 403(b), and most 457 plans rises to $24,500 for 2026. Every worker gets that baseline regardless of age.
Catch-up contributions then layer on top, and the amount depends on how old you are:
- Under 50: $24,500 maximum. No catch-up allowed.
- Ages 50 to 59 (and 64 and older): $24,500 plus a $8,000 catch-up, totaling $32,500.
- Ages 60 to 63: $24,500 plus an enhanced catch-up of $11,250, totaling $35,750.
The enhanced catch-up replaces the standard $8,000 figure for anyone who turns 60, 61, 62, or 63 at any point during the calendar year. You don’t have to wait until your birthday to start deferring at the higher rate. But the window is narrow: once you turn 64, you drop back to the regular $8,000 catch-up. That means any individual worker gets at most four years at the elevated limit.
These figures are also confirmed in IRS Publication 560, which lists the enhanced catch-up alongside the general deferral caps for 2026.
Why the math behind $11,250 is a little strange
SECURE 2.0 set the enhanced catch-up at the greater of $10,000 (adjusted for inflation) or 150% of the standard catch-up amount. Since 150% of $8,000 equals $12,000, you might expect the limit to land there. It didn’t. The IRS published $11,250 for both 2025 and 2026, a figure that appears to reflect the inflation-adjusted $10,000 floor rather than the 150% calculation.
No official guidance has explained the discrepancy, and both Notice 2025-67 and Publication 560 use $11,250 as the operative number. For planning purposes, that is the figure to use.
The Roth wrinkle for higher earners
There is a significant catch for workers who earn more than $145,000 from the employer sponsoring their plan. Under SECURE 2.0, those higher earners must direct their catch-up contributions into a designated Roth account, meaning the money goes in after tax rather than pre-tax. The upside is tax-free growth and tax-free withdrawals in retirement. The downside is a smaller paycheck now, since you lose the upfront deduction.
The IRS lists the $145,000 threshold on its retirement plan cost-of-living adjustments page. However, detailed guidance for workers with multiple employers, those who change jobs midyear, or participants in governmental 457 plans that coordinate with 403(b) arrangements remains limited as of June 2026. Many plan sponsors and payroll providers have programmed their systems to accept the published limits but are still waiting on Treasury Department clarification before finalizing edge-case scenarios.
Most workers in their early 60s won’t hit the ceiling
The enhanced catch-up sounds like a gift to every 60-something worker. In practice, it is most useful to a relatively narrow slice: people in their early 60s who already max out their regular contributions and still have cash left over to save more.
That is a high bar. Vanguard’s 2024 “How America Saves” report found that the median 401(k) contribution rate across all age groups was about 6.2% of pay. For a worker earning $80,000, that translates to roughly $4,960 a year, nowhere near the $24,500 base limit, let alone $35,750. Older workers do tend to save at higher rates than younger ones, but even among participants in their 60s, only a small fraction hit the annual deferral ceiling. Mortgage payments, support for adult children, and rising healthcare costs all compete for the same dollars.
Still, for those who can swing it, the extra room is meaningful. An additional $3,250 per year over the four-year window (ages 60 through 63) adds $13,000 in tax-advantaged contributions beyond what the standard catch-up allows. Invested at a modest annual return, that sum can grow into a noticeable cushion by the time withdrawals begin. Workers in higher tax brackets get an amplified benefit, whether through the upfront deduction on pre-tax deferrals or through decades of tax-free compounding in a Roth account.
What the enhanced catch-up does not cover
The higher limit applies only to employer-sponsored plans: 401(k)s, 403(b)s, and eligible 457 plans. It does not change the rules for Individual Retirement Accounts. The IRA catch-up contribution for workers 50 and older stays at $1,000 for 2026, a figure that is not indexed for inflation under current law. So even a worker who maxes out both a 401(k) and a traditional or Roth IRA tops out at $35,750 plus $8,000 (the $7,000 IRA base plus the $1,000 IRA catch-up), for a combined $43,750 in personal deferrals across both account types.
Self-employed workers with solo 401(k) plans can use the enhanced catch-up on the employee-deferral side, but the employer-contribution portion follows separate rules tied to net self-employment income. SIMPLE IRA and SIMPLE 401(k) plans have their own enhanced catch-up amount for ages 60 to 63: $5,250 in 2026, which is distinct from the $11,250 figure that applies to traditional 401(k) and 403(b) plans.
How to actually capture the full $35,750
If you fall in the 60-to-63 window and want to use every dollar of the enhanced limit, the single most important step is an early one: update your payroll deferral election now rather than waiting until fall. Spreading $35,750 across a full year of paychecks is far more manageable than trying to cram contributions into the final months. Some plans also stop accepting deferrals once you hit the annual limit, which can cause you to miss employer matching contributions in later pay periods. Adjusting early avoids that trap.
Next, confirm that your plan has formally adopted the SECURE 2.0 enhanced catch-up provision. Most large employers have done so, but smaller plans may lag. Your plan’s summary plan description or online enrollment portal should spell out the available limits. If your wages put you above the $145,000 Roth catch-up threshold, verify that your plan offers a designated Roth account and can route the catch-up portion there.
Finally, keep an eye on IRS announcements through the rest of 2026. Future guidance could clarify the inflation-indexing methodology behind the $11,250 figure, spell out rules for workers who cross the Roth wage threshold midyear, and address coordination issues for people contributing to multiple retirement plans. Until then, the limits published in Notice 2025-67 are the numbers to build your plan around.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
