Catch-Up Contribution

RetirementGlossary term

Definition

Additional retirement plan contributions allowed for individuals aged 50 and older, above the standard annual limits. For 2026, the catch-up amount is $8,000 for 401(k) plans and $1,100 for IRAs, helping older workers boost savings before retirement.

Related terms

401(k)A tax-advantaged retirement savings plan offered by employers that allows employees to contribute a portion of their salary before taxes. Many employers offer matching contributions up to a certain percentage.

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