Retirement Retirement Planning

The 401(k) Rule That Matters Most For Older Workers

Everyone who is aged 60 - 63 needs to know about this.

By Catherine Collins , Edited by Laura Hohenstein

Updated May 15, 2026

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There is a 401(k) rule that matters most for older workers, and it's new as of 2025. With the passage of the SECURE 2.0 Act, now workers who are between the ages of 60 and 63 can make a super catch-up contribution to their 401(k) retirement plans.

However, many people don't know this opportunity exists, and if they do, it's commonly misunderstood. So, here is everything you need to know about super catch-up contributions, what they entail, and how they may impact your taxes if you're a high earner.

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The 401(k) rule that matters most

Workers can start taking advantage of catch-up contributions at age 50. That's when you can contribute an extra $8,000 on top of your 401(k)'s maximum contribution limit.

But as of 2025, those who are age 60 to 63 can contribute even more. Those workers can add an extra $11,250 as a "super" catch-up contribution, bringing their total 401(k) contribution to $35,750.

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Confirm your employer actually offers catch-up contributions

The caveat with super catch-up contributions is that not all employers offer them as a 401(k) option. It's optional for employers to provide them, so not every single company has adopted it as an employee benefit.

In order to find out whether or not your employer's 401(k) plan has this as an option, contact your human resources department or plan administrator.

New 2026 contribution policies you need to know

Although workers can contribute the largest catch-up contributions to date, there has been a change in how high-income workers can contribute. If you make over $150,000 per year, you must make your catch-up contributions as Roth contributions.

That means that many high-income earners will not be able to use catch-up contributions as a way to lower taxable income, like in previous years. Still, the benefit of a Roth contribution is that people can withdraw the money tax-free in retirement, so long as they meet certain requirements. If you have questions about how to contribute funds to a Roth account and not as a traditional 401(k) contribution, contact your human resources department.

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Why ages 60 - 63 are vital to retirement savings

Using catch-up contributions at ages 60 to 63, regardless of how they affect taxable income, is vital because it's one of the last opportunities people have to top up their 401(k)s before retiring. It's a large tax sheltering opportunity that occurs before Medicare and Social Security are locked in.

Additionally, at that age, people are typically in their peak earning years with the most work experience. So, technically, many of them will hopefully have additional income to make the most of their 401(k)s.

What to keep in mind after you turn 64

Once you turn 64, your opportunity for a super catch-up contribution closes, but you can still make standard catch-up contributions of $8,000.

Another policy to keep in mind involves Required Minimum Distributions (RMDs). The SECURE 2.0 Act updated the RMD age to 73, up from 72 in previous years. That means that if you haven't made a 401(k) withdrawal yet by the time you reach 73, the law requires you to do so.

Ways to prepare to shift to a fixed income

One of the hardest transitions for older workers is shifting from salary-based income to a fixed income.

One beneficial habit is practicing living on your retirement income while you're still working. Many people have to live on less in retirement, so learning to manage expenses in advance can help them transition.

Additionally, taking the time to pay down high-interest debt to reduce your expenses in retirement can go a long way toward making the transition easier.

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How a financial planner can help you prepare

If you're worried about having enough income in retirement, working with a financial planner can help you prepare financially for what's ahead.

A financial planner can review your current 401(k) balance, make recommendations about your contributions, and help you plan a withdrawal strategy that is tax-optimized. They can also fill you in on any policy changes that may impact your 401(k) contributions, RMD age, and more.

Bottom line

Most Americans work hard throughout their careers, hoping to save and invest enough to enjoy many stress-free retirement years.

However, many people don't realize they can add significantly to their 401(k) accounts through super catch-up contributions. These contributions are an opportunity to add to your retirement account, but there is only a three-year window to be able to contribute the maximum amount. If you want to know how to maximize your retirement savings and make a plan for your withdrawals, contact a financial advisor for help and advice.

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