Catch-Up Contribution.

A catch-up contribution is an additional amount savers aged 50 or older are permitted to contribute to tax-advantaged retirement accounts above the standard annual limit. For 2024, the catch-up is $7,500 for 401(k)s and $1,000 for IRAs. The SECURE 2.0 Act introduced a higher catch-up limit for ages 60–63 starting in 2025. Catch-up contributions are designed for workers who entered the workforce late, took career breaks, or simply prioritized other financial goals in earlier years and now want to accelerate retirement savings in their peak earning years.