You’ve worked hard, saved consistently, and can finally see retirement on the horizon. The big goals – paying off the mortgage, funding college, building your nest egg – are largely behind you. Now it’s about finishing strong.

The years just before retirement are often your best opportunity to add flexibility and confidence to your plan – and catch-up contributions can help you do exactly that. They allow you to put extra money into your retirement accounts beyond the regular limits, turning your peak earning years into a final push toward lasting financial independence.

How Catch-Up Contributions Work – and Why They Matter

Catch-up contributions are extra savings opportunities for people age 50 or older. They exist because many savers only hit their financial stride in the final decade before retirement, and need flexibility to take advantage of those higher earnings.

At this stage, the focus shifts from building wealth to building flexibility – making sure your money is ready to support the life you’ve worked for. You don’t have to use every type of account, but understanding how each works helps you decide where to focus. The goal isn’t necessarily to contribute the maximum amount possible – it’s to contribute in the right places, based on your plan access, tax situation, and the overall needs of your financial plan.

2025 Catch-Up Contribution Limits

Here’s how much you can contribute in 2025 across the most common accounts:

Tip: Not every employer plan automatically adopts the new “super catch-up” for ages 60–63. If you’re a business owner or decision-maker, our Retirement Plan Consulting team can help you evaluate and improve your company’s retirement plan to better support employees nearing retirement.

Deciding Where (and How) to Save More

Once you know what’s available, the next step is deciding where additional savings will do the most good. You can think of catch-ups as a flexible toolkit – but the right combination depends on your income, access to different plans, and broader financial plan.

1. Start with What You Have Access To

• Workplace plans (401(k), 403(b), TSP, SIMPLE) – usually the easiest and often one of the most powerful places to save, thanks to payroll deferrals and employer matches.
• IRAs (Traditional or Roth) – add flexibility outside your employer plan.
• HSAs – combine long-term investing with short-term healthcare flexibility.
• 457(b) plans – typically offered by state or local governments and some nonprofits, offering unique late-career advantages.

You don’t need to use all of them (and probably don’t have access to all of them) – focus on the ones that provide the biggest benefit based on your situation.

2. Decide Between Pre-Tax and Roth

For now, most savers can choose between pre-tax (traditional) and Roth contributions. But beginning in 2026, higher earners – those with prior-year wages above $145,000 from their employer – will have to make catch-up contributions in a Roth account.

If you’re trying to decide which type of contribution fits best for your situation, our article Roth vs. Traditional: How to Choose the Right Retirement Account for You[link] walks through the key tax differences, how each affects future flexibility, and what to consider based on your income and goals.

If that applies to you, it’s worth planning now.

• If you expect your tax rate to stay the same or drop in retirement, pre-tax contributions may still make sense this year.
• If you expect your tax rate to rise in the future, Roth contributions may be the better path.

Quick flow:

• Are your plan wages over $145,000?
  • Yes → Starting 2026, your catch-ups must be Roth.
  • No → You can continue choosing between pre-tax and Roth.
    Either way, make sure your plan offers both options – not all do.

3. Take Advantage of the “Super Catch-Up” (Ages 60–63)

If you’re in your early 60s, the next few years bring an even bigger opportunity: “super catch-up” contributions in many types of accounts. For 2025, workers aged 60–63 can contribute an extra $11,250 on top of the standard $23,500 limit to their 401(k) or similar plans – assuming their plan adopts it.

Paul & Karen’s Final Stretch

Paul just turned 60 and has started thinking seriously about the transition from earning to spending. He’s still working full time, and his income is near its peak – but he’s also realizing that retirement isn’t as far away as it used to be. Karen, at 58, is a few years behind him. They’ve both saved consistently, but this feels like their last big window to strengthen their plan before they start drawing from it.

• Paul (age 60): $34,750 in his 401(k) + $8,000 IRA = $42,750
• Karen (age 58): $31,000 in her 401(k) + $8,000 IRA = $39,000
  Together: $81,750 of potential annual retirement savings

That kind of acceleration can significantly strengthen their portfolio in the last five years before retirement – but it’s important to balance these savings with upcoming cash-flow needs like travel, home updates, or college support. For Paul and Karen, that clarity was key – understanding their options made it easier to see the life their savings could support.

Just like all financial planning decisions, the amount that you want to save is about managing tradeoffs. You want to meet your retirement spending goals, but you also want to enjoy your life right now as well. That balance looks different for everyone – and finding it starts with knowing what matters most to you.

If you’d like help making sure your saving decisions align with the life you want in retirement, download our free guide, Life Beyond the Numbers – a simple framework to help you connect money and meaning.

4. Don’t Overlook the HSA

If you’re enrolled in a high-deductible health plan, a Health Savings Account offers a “triple tax advantage”:

• Contributions are pre-tax,
• Growth is tax-deferred, and
• Withdrawals for qualified medical expenses are tax-free.

After 65, HSA withdrawals for non-medical expenses work like IRA withdrawals – taxable, but penalty-free. The $1,000 catch-up after age 55 can quietly add flexibility for healthcare costs later in life.

5. Public-Sector or Nonprofit? Know Your 457(b) Options

457(b) plans come with their own powerful but often misunderstood rule: in the final three years before your normal retirement age, you may be able to contribute up to double the regular limit ($23,500 * 2 = $47,000) – but you can’t combine that with the 50+ catch-up in the same year.

This can be a major advantage for public employees who start late or have uneven savings years. If you’re not sure how your plan defines “normal retirement age,” check with your HR department or plan provider.

Tax Planning in the Final Stretch

Catch-up contributions aren’t just about saving more, and it’s understandable if these decisions feel overwhelming. Clarity brings confidence – and catch-ups can also be a powerful tax-planning tool.

Consider how additional contributions affect:

• Tax brackets: Large pre-tax deferrals can lower taxable income.
• IRMAA thresholds: Extra Roth conversions could affect Medicare premiums two years later.
• Roth conversions: If you’re planning conversions, you may want to balance deferrals now with conversions later.
• Cash flow: Maxing every account is great – unless it strains the lifestyle you’re trying to enjoy today.

Starting in 2026, the required Roth catch-up for higher earners may shift how your paychecks look and how you plan year-to-year taxes. Adjusting early can help smooth that transition.

Ultimately, the right level of saving isn’t about chasing the highest number – it’s about aligning your money with what gives your retirement meaning.

Putting It All Together

The final years before retirement are when the small details start to matter – and catch-up contributions are one of the simplest ways to strengthen your financial flexibility.

Start by confirming your plan’s options, reviewing your tax situation, and deciding how much savings you truly need to live your ideal next chapter. You don’t have to figure it all out alone – the right partner can help you turn the technical rules into a purposeful plan.

Quick Tip:
Contribution rules can change, and employer plan design varies. If you’re a business owner or decision-maker, our Retirement Plan Consulting team can help you evaluate and improve your company’s retirement plan to better support employees nearing retirement.

Your Next Step

If you’re ready to move from information to action, we can help. You’ve worked hard to reach this point. Now it’s about using your resources intentionally — not just to save more, but to support the life you want to live.

Download Life Beyond the Numbers to explore how to design your next chapter with confidence and clarity.