If you are between 60 and 63 years old this year, the IRS just handed you the most powerful tax shelter of your career. The 2026 401(k) contribution limit jumped to $24,500, but the real news is buried in the catch-up rules: workers ages 60 to 63 can now contribute up to $35,750, an enhanced “super catch-up” born out of the Secure 2.0 Act.
For someone in the peak of their earning years, this is essentially a free tax deduction worth thousands. And almost nobody is using it. A 2025 Fidelity survey found that fewer than one in five eligible workers had even adjusted their contribution rate to capture it.
If you read nothing else in this article, read the next sentence. The window is open for only four years of your life, and most workers leave the money on the table.
Secure 2.0 created a special category for workers in their peak earning years. Specifically, anyone who turns 60, 61, 62, or 63 by the end of the tax year can contribute an additional catch-up of either $10,000 or 150% of the standard catch-up, whichever is greater. In 2026, that math works out to $11,250.
Add it to the standard $24,500 limit and you get a maximum elective deferral of $35,750. For someone in the 32% federal bracket, that is about $11,440 in federal tax savings in a single year, before any state benefit.
The other change worth understanding is the new Roth requirement. If you earned more than $150,000 in 2025, all of your catch-up contributions in 2026 must go in as Roth (after-tax) money. You still get the contribution; you just lose the upfront deduction on that portion. The tradeoff is tax-free growth and withdrawals in retirement.
For most high earners, this is a wash or a slight long-term win. The exception is workers who expect to retire in a much lower bracket — they would have preferred the deduction. Either way, talk to a CPA before quarter-end so the payroll deduction is set up correctly.
The IRA contribution limit rises to $7,500. The catch-up climbs to $1,100, for a total of $8,600 for those 50 and older. SIMPLE retirement account limits move to $17,000. These are smaller numbers but matter for self-employed workers and small business owners.
A useful framing: max your 401(k) first if you have one, take any IRA tax deduction you qualify for, and only then consider a taxable brokerage account. Tax-advantaged space is the most valuable real estate in your financial life.
The 2026 employee contribution limit is $24,500, up from $23,500 in 2025.
Up to $35,750, which is the $24,500 base plus an $11,250 super catch-up.
If you earned more than $150,000 in 2025, any catch-up contribution in 2026 must be made as Roth (after-tax) rather than pre-tax.
$7,500 standard, with a $1,100 catch-up for ages 50 and older.
No. You must adjust your contribution election with your employer’s plan administrator to capture the additional amount.
If you earn more than $150,000 and your plan does not support Roth, you may not be able to make catch-up contributions in 2026. Ask your HR team to confirm.