Everything You Need to Know About Catch-Up Contributions in 2025

If you’re nearing retirement and feeling worried you haven’t saved enough, here’s the good news: It’s never too late to save. If you weren’t able to put away as much in your younger working years as you’d have liked, there are many ways to catch up on retirement savings today. And once you reach a certain age (perhaps when you’re making more and your expenses start to fall), you unlock another way to get caught up: catch-up contributions.

Below, we explain what catch-up contributions are and how they work. We also explore the impact they can have on your broader retirement plan and spotlight the limits you need to know for different types of tax-advantaged accounts.

What are catch-up contributions?

When you contribute to a tax-advantaged retirement savings account, the IRS sets limits as to how much you can contribute each year. However, once you reach age 50, you’re able to contribute an added amount—called a catch-up contribution—in addition to the general contribution limit, making your overall annual contribution limit higher.

By allowing you to contribute more each year once you reach age 50, catch-up contributions give you the opportunity to boost your retirement savings as you near retirement.

How do catch-up contributions work?

Most tax-advantaged retirement accounts—including a 401(k), an IRA, a SIMPLE IRA, 403(b) and a 457(b)—allow you to begin making additional contributions in the calendar year that you turn 50. How much more you’re able to contribute will depend on your retirement plan, as different types of plans have different contribution limits.

Catch-up contributions can make a substantial difference in what you’re able to save, thanks to compound interest.

Let’s say you’ve been contributing to a 401(k), and now at age 50 you have a balance of $200,000. While it may feel like you’re behind, you’ve decided that moving forward, you’re going to contribute up to the full contribution limit: $23,500 in 2025). By contributing an additional $7,500 (the 401(k) catch-up contribution limit in 2025), you could grow your retirement savings by quite a bit in a few short years.

If you began making catch-up contributions at age 50, by age 65, you could have saved an additional $198,101.43 for retirement by maxing out your catch-up contributions.

Catch-up contribution limits

401(k) catch-up contribution limits

• Standard contribution limit: $23,500
• Catch-up contribution: $7,500 for 50+; $11,250 for 60-63
• Total limit: $31,000 for 50+; $34,750 for 60-63

Though you’re able to contribute more to a retirement account after age 50, there are still limits on what you’re able to contribute in a given year. Here are the 2025 catch-up contribution limits for some common retirement savings accounts:

In 2025, you can make a catch-up contribution of up to $7,500 to your 401(k) if you are 50-59 years old or if you are older than 63 years old. If you are 60, 61, 62, or 63 years old, your catch-up contribution limit is higher: $11,250. So, according to the contribution limits for a 401(k), you can contribute between $31,000 and $34,750 to a 401(k) each year, depending on your age.

IRA catch-up contribution limits

• Standard contribution limit: $7,000
• Catch-up contribution: $1,000
• Total limit: $8,000

For an IRA, you’re able to contribute up to an extra $1,000 in 2025, which means you can contribute a total of $8,000 per year after age 50 ($7,000 contribution plus $1,000 catch-up), according to the IRA contribution limits¹. One perk of an IRA is that you have until the tax deadline to make contributions for that year. So, you can make contributions to your IRA for the 2025 calendar year until April 15, 2026. In future years, the catch-up contribution will include a cost-of-living adjustment.

SIMPLE IRA catch-up contribution limits

• Standard contribution limit: $16,500
• Catch-up contribution: $3,500 for 50+; $5,250 for 60-63
• Total limit: $20,000 for 50+; $21,750 for 60-63

You’re able to contribute up to an additional$3,500 per year to a SIMPLE IRA in 2025 if you’re aged 50-59 or 64+. When added to the standard contribution limit of $16,500, this means you’re able to contribute up to $20,000 to a SIMPLE IRA in 2025. If you’re between 60 and 63 years old, your catch-up contribution is $5,250 for a total possible contribution of $21,750.

403(b) and 457(b) catch-up contribution limits

• Standard contribution limit: $23,500
• Catch-up contribution: $7,500 for 50+; $11,250 for 60-63
• Total limit: $31,000 for 50+; $34,750 for 60-63

The standard contribution limits and catch-up contribution limits for 401(k)s are typically used for 403(b)s and 457(b) plans as well.

That means that if you’re 50-59 years old or if you are older than 63 years old, you can make a catch-up contribution of $7,500 in your account. Likewise, if you’re between the ages of 60 and 63, you can make a higher catch-up contribution of up to $11,250. On top of the standard contribution limit of $23,500, this means your actual limits will be either $31,000 or $34,750, depending on your age.

With a 403(b) plan or a 457(b) plan, you may also be eligible to save even more as you near retirement. For example, with some 403(b) plans, once you have at least 15 years of service, you could be eligible to contribute even more to a retirement account—in addition to catch-up contributions. Likewise, with some 457(b) plans, there are rules that allow for special catch-up contributions within three years of retirement.

HSA catch-up contributions

• Standard contribution limit: $4,300 for self-coverage; $8,550 for family coverage
• Catch-up contribution: $1,000 for 55+
• Total limit: $5,300 for self-coverage; $9,550 for family coverage

Once you turn 55, you’ll also be eligible to take advantage of catch-up contributions to a health savings account (HSA) as well, if you contribute to one. In the tax year that you turn 55, you can increase your contribution to your HSA by $1,000 per year.

Contributing to your HSA has a triple tax benefit: You contribute pre-tax dollars, your money can grow tax-free and you’re able to withdraw money tax-free (as long as it’s used for qualifying health care expenses). This can result in some real savings as you get older and may potentially be spending more on health care.

How to make catch-up contributions

Starting to make catch-up contributions can be as simple as contacting your plan administrator or accessing your online account to adjust your contribution amount. However, there’s more that goes into this decision.

A good retirement plan relies on multiple savings vehicles, and though you’re able to contribute more at age 50, you’ll want to think about what account to contribute to, how much to contribute, and how those contributions might affect your overall savings plan.

Your Northwestern Mutual financial advisor can help you look at what you’ve saved and develop a plan that’ll leverage the benefits of multiple financial options. Using options beyond your 401(k) can help you maximize your retirement income while also planning for common risks like market volatility, inflation and taxes. Having a plan in place can help you worry less about creating reliable income in retirement, allowing you to focus more on how you’ll spend your hard-earned retirement.

¹In order to contribute to a Roth IRA, you must meet the income limits established by the IRS. You must also meet the IRS income limit requirements to deduct traditional IRA contributions.

This publication is not intended as legal or tax advice. The information is intended solely for the information and education purposes and must not be used as a basis for legal or tax advice. Northwestern Mutual and its financial representatives do not provide legal or tax advice. Consult with a tax or legal professional for tax advice specific to your situation.