From 24/7 Wall St. · Jake FitzGerald · · 1m 10s
401(k) Catch-Up Rules for Gen Xers
Congress sets $11,250 401(k) boost for Gen Xers turning 60-63, drops to $8,000 at 64.
In brief
Congress sets $11,250 401(k) boost for Gen Xers turning 60-63, drops to $8,000 at 64. Workers aged 60-63 can contribute $11,250 extra to 401(k)s in 2026, but the boost drops to $8,000 when they turn 64. Originally reported by 24/7 Wall St..
Congress Builds 401(k) Boost
Congress created a four-year window for workers 60-63 to boost 401(k) contributions.
“Congress quietly built a four-year savings window for workers in their early 60s”
Catch-Up Boost Amount
Workers 60-63 can add $11,250 to 401(k) on top of $24,500 standard limit.
“For four calendar years, workers ages 60 through 63 can push an extra $11,250”
Boost Drops at 64
The boost vanishes when you turn 64, reverting to $8,000 catch-up limit.
“The year you turn 64, that bonus vanishes. Your catch-up reverts to $8,000”
Gen Xers First to Benefit
Oldest Gen Xers (born 1963-1966) are the first to use the full four-year window.
“Congress built a four-year runway, and the oldest Gen Xers are the first cohort to walk the whole length of it”
SECURE 2.0 Provision
The catch-up rule comes from SECURE 2.0 tax law passed in 2022, delayed to 2026.
“The enhanced catch-up is a SECURE 2.0 provision. The change, which took effect on Jan. 1, was enacted as part of the SECURE 2.0 tax law passed in 2022”
Roth Catch-Up Rule
High earners over $150,000 must use Roth 401(k) for catch-up contributions.
“For 2026, employees 50 and older who earned more than $150,000 in 2025 must make their catch-up contributions to a Roth 401(k)”
Social Security Wage Threshold
The $150,000 threshold uses Social Security taxable income, not all earnings.
“That’s the box that shows earnings subject to Social Security tax. Other income, say, earnings from a side gig reported on a Form 1099, doesn’t count”
Plan-Level Limitations
Not all 401(k) plans offer the enhanced catch-up or Roth 401(k) features.
“The enhanced catch-up is optional at the plan level. Not all plans offer it”
Action Steps for Users
Max contributions early, coordinate with spouse, and watch birthday year for threshold.
“Front-load contributions early in the year if your plan allows true-up on the match, so a maxed-out December does not cost you employer dollars”
What matters most
Workers aged 60-63 can contribute $11,250 extra to 401(k)s in 2026, but the boost drops to $8,000 when they turn 64.
