Workers Aged 60 to 63 Can Contribute Up to $35,750 Annually Starting in 2026
Starting in 2026, workers aged 60 to 63 can contribute up to an additional $11,250 annually into their 401(k) accounts under the SECURE 2.0 provision, raising the maximum annual contribution limit to $35,750. This enhancement is intended for individuals who may still have earning years left and are close to retirement but fall short of savings goals. Despite this generous increase, uptake has been low. In 2025, only 15.2% of eligible participants made any catch-up contributions, with just 8.6% meeting the standard maximum contribution limit at all. The high contribution cap is also difficult for most workers to reach given that median full-time earnings are around $64,000 annually. Additionally, under SECURE 2.0, higher-earning individuals (those making over $150,000 in FICA wages) must contribute catch-up amounts into Roth accounts rather than pretax ones, which could affect cash flow for some high-income workers.
Topics: 401(k) contributions catch-up contributions retirement savings SECURE Act