Why these years matter
Investment advisory services described on this page are offered through Avinci Wealth Management, Inc., a Registered Investment Adviser registered in California, Arizona, Illinois, Texas, and Nevada. This page is general information for educational purposes and is not tax, legal, or individualized investment advice. Avinci does not prepare tax returns. Confirm your own position with your CPA and plan administrator.
For many households the last ten to fifteen working years are the highest-earning ones, and the years when children's costs have eased. Catch-up contributions exist to let savings accelerate during that window, and SECURE 2.0 changed how they work in two ways that are easy to miss: a larger limit for four specific ages, and a requirement that sends some savers' catch-ups to Roth.
The figures below are the 2026 limits published by the IRS. They are indexed and change most years, so check the current year against the IRS catch-up contributions page before acting.
The age-50 catch-up
Eligibility begins in the calendar year you turn 50, so someone with a December birthday can make catch-ups from January of that year. Catch-ups sit on top of the standard deferral limit, and contributions generally count as catch-up only after the standard limit has been reached.
| Account | Catch-up age | Note |
|---|---|---|
| 401(k), 403(b), governmental 457(b) | 50, with a larger limit at 60 through 63 | The plan must permit catch-ups; most do |
| SIMPLE IRA and SIMPLE 401(k) | 50, with a larger limit at 60 through 63 | Separate, lower limits apply |
| Traditional and Roth IRA | 50 | Indexed for inflation since 2024; no 60 through 63 increase |
| Health savings account | 55 | Requires eligible high-deductible coverage. Medicare enrolment ends eligibility to make or receive HSA contributions, and retroactive Part A coverage may affect the allowable contribution amount |
A general summary. Plan terms govern what your own plan allows.
The 2026 limits
| Account type | Regular 2026 limit | Total at 50–59 or 64+ | Total at 60–63 |
|---|---|---|---|
| 401(k), 403(b), governmental 457(b) | $24,500 | $32,500 | $35,750 |
| SIMPLE IRA / SIMPLE 401(k), standard limits | $17,000 | $21,000 | $22,250 |
| Traditional or Roth IRA | $7,500 | $8,600 | $8,600 |
Employee contribution limits for 2026 as published by the IRS. Employer contributions are separate. Certain SIMPLE plans have different limits, and plan terms and eligibility restrictions apply. Figures are indexed and generally change each year.
The larger limit at 60 through 63
Starting in 2025, SECURE 2.0 allows a larger workplace catch-up in the calendar years you turn 60, 61, 62 and 63. The amount is set by formula as the greater of a fixed figure or 150 percent of the standard catch-up, and it is indexed. For 2026 that produces an $11,250 catch-up against the standard $8,000.
The window is narrow and closes abruptly. In the year you turn 64, the limit reverts to the standard age-50 amount. For someone planning to retire in their early to mid sixties, those four years can coincide with the final, highest-earning years of work, which is when the additional room is most usable.
Four years of a larger limit, then it goes back down. It rewards knowing the calendar in advance.
The 2026 Roth catch-up rule
Beginning in 2026, employees whose 2025 Social Security wages from the employer sponsoring their retirement plan exceeded $150,000 generally must make their 2026 catch-up contributions on a Roth basis. The threshold is indexed for future years. Final regulations issued in September 2025 confirmed the date, with a good-faith compliance standard during 2026 and the regulations themselves applying from 2027.
- It applies to the catch-up portion only. The requirement covers the catch-up part of eligible workplace contributions, not automatically the employee's entire annual contribution. Depending on the plan, affected participants may still make regular contributions on a pre-tax basis.
- It applies to workplace plans. 401(k), 403(b) and governmental 457(b) catch-ups are covered. IRA catch-ups are not.
- It is measured per employer. The test uses the prior year's wages from the employer sponsoring the plan, subject to the applicable statutory wage definition, so a new employee is generally not subject to it in the first year.
- It depends on a Roth option. If a plan does not offer Roth contributions, participants above the threshold generally cannot make catch-ups in that plan at all.
- It can be automatic. Plans may treat affected participants' catch-ups as Roth by default, so a paystub or year-end statement is the place to confirm how contributions were actually coded.
The practical effect for affected savers is a higher current tax bill on the catch-up portion in exchange for tax-free qualified withdrawals later. The rules on how Roth money can come out are covered in Roth conversion rules, including the five-year clock.
Other catch-up provisions
- 403(b) long-service catch-up. Certain employees with at least 15 years of qualifying service with certain employers, such as public schools and hospitals, may be eligible for a special 403(b) catch-up, subject to plan provisions, annual limits and a lifetime limit. When both the special 403(b) catch-up and the age-based catch-up are available, ordering rules determine how contributions are classified. It is generally not subject to the Roth requirement.
- 457(b) final-three-years catch-up. Governmental 457(b) plans may allow a larger catch-up in the three years before normal retirement age. It generally cannot be combined with the age-50 catch-up in the same year; the larger of the two applies.
- Multiple plans. Someone participating in both a 403(b) and a governmental 457(b) can generally contribute to each under separate limits, which matters for many public employees.
The California layer
California generally follows federal retirement contribution rules, although certain differences can still arise. Beginning with the 2025 tax year, California adopted the federal provisions indexing the IRA catch-up contribution limit and allowing the enhanced catch-up contributions for eligible workers aged 60 through 63, as described in the Franchise Tax Board's Form FTB 3805P instructions.
Taxpayers should confirm applicable contribution limits and any remaining California adjustments with a qualified tax professional, particularly where contributions span tax years before and after conformity.
Contribution limits, the Roth catch-up threshold and California conformity change over time. Rules described here are general summaries of published law as of the date of this article. Confirm current limits with the IRS and your plan, and your California treatment with your CPA.
Pre-tax or Roth, when you choose
For savers below the threshold, and for IRA catch-ups, the pre-tax or Roth choice is still open. The usual question is whether the tax rate today is higher or lower than the rate expected when the money comes out, but in the years before retirement several other things belong in it: how large required minimum distributions are likely to be, whether withdrawals will push income into Medicare premium surcharges, whether a move out of California is possible, and how much is already in each type of account.
Those are the same inputs that shape Roth conversion decisions after retirement, covered in Roth conversion planning, and they are easier to weigh together than one year at a time.
How Avinci approaches it
Avinci Wealth Management is a Registered Investment Adviser registered in California, Arizona, Illinois, Texas, and Nevada, firm CRD #327780, headquartered at 23929 Valencia Blvd, Suite 404 in Santa Clarita, with additional offices in Beverly Hills and Woodland Hills. When providing investment advisory services, Avinci Wealth Management is subject to its fiduciary obligations under applicable investment adviser law.
Canoga Park clients typically meet with Avinci at our Woodland Hills office on Ventura Boulevard. The firm serves as financial planner and financial consultant for households in the west San Fernando Valley, coordinating investment management, retirement income, and tax planning done in coordination with each client's CPA.
Through the Retirement Blueprint planning process, contributions in the final working years may be evaluated alongside the expected retirement date, the mix of pre-tax and Roth balances, and the tax picture after retirement. The scope of any analysis depends on the client's circumstances and the information available from the plan. Founder Lindahl Lucas is involved in overseeing the development of Retirement Blueprint planning. Tax positions are confirmed with your CPA.
Avinci receives advisory fees for investment advisory services. Separately, insurance and annuity products may be offered through our affiliated insurance agency, Lucas Insurance Services, which may receive commissions from issuing insurance companies. This compensation arrangement creates a conflict of interest and is disclosed in our Form ADV.
Important disclosures. This material is for informational purposes only and should not be construed as individualized investment, tax, or legal advice, or as a recommendation to buy or sell any security or insurance product. Consult your CPA or plan administrator before acting on anything described here.
Registration. Investment advisory services are offered through Avinci Wealth Management, Inc., a Registered Investment Adviser, firm CRD #327780, registered in California, Arizona, Illinois, Texas, and Nevada. Registration as an investment adviser does not imply a certain level of skill or training. Our Form ADV Part 2A brochure describes our services, fees, and conflicts of interest, and is available on request and through our IAPD record.
Tax rules and sources. Catch-up provisions are set out in Internal Revenue Code section 414(v) as amended by SECURE 2.0, sections 109 and 603, and in the related final regulations. The 2026 dollar limits shown are those published by the IRS for 2026 and are indexed annually. California treatment is described in the Form FTB 3805P instructions. Descriptions here are general summaries as of the date of this article and are subject to change. Avinci Wealth Management, Inc. does not prepare tax returns or provide tax advice.
Projections and risk. Projections described here are hypothetical and illustrative and do not guarantee future results. Investments involve risk, including possible loss of principal. Insurance and annuity products are offered through our affiliate, Lucas Insurance Services, which may receive commissions; this creates a conflict of interest disclosed in our Form ADV.