"This is why president George W. Bush passed legislation in 2001 that (among other things) allowed for catch-up contributions among workers who were 50 or older. This gave older workers a chance to beef up their 401(k) accounts while they were typically at the peak of their earning years and let them continue to take advantage of making pre-tax contributions."
"As of 2025, workers may contribute up to $23,500 pre-tax to their 401(k) or other defined contribution workplace retirement plan. Workers over the age of 50 may put aside an additional $7,500 in catch-up contributions, for a total of $31,000, pre-tax. And any workers between the ages of 60 and 63 may make an $11,250 super catch-up contribution, for a total contribution limit of $34,750 in pre-tax dollars."
Many people delay retirement planning and risk underfunded 401(k) accounts close to retirement. In 2001, president George W. Bush created catch-up contributions for workers aged 50 and older to allow larger pre-tax contributions during peak earning years. As of 2025, the base contribution limit is $23,500, plus a $7,500 catch-up for those 50+ and an $11,250 super catch-up for ages 60–63, enabling total pre-tax limits up to $34,750. Those pre-tax catch-ups reduce current-year taxable income substantially. Beginning in 2027, workers who earned $145,000 or more from their current employer in the prior year must make catch-up contributions with after-tax dollars.
Read at Fast Company
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