In short
People aged 50 or older can make extra catch-up contributions to 401(k) and similar plans and to individual retirement accounts, above the normal annual limits.
Key takeaways
- From 2025, people aged 60 to 63 can make a larger catch-up to workplace plans.
- From 2026, employees whose prior-year wages exceeded a threshold must make workplace catch-ups as Roth contributions.
- Catch-up amounts are indexed for inflation.
Where it's tested
TCP: Retirement Planning Strategies — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A taxpayer has $90,000 in traditional IRAs, of which $9,000 represents nondeductible (after-tax) contributions. The taxpayer converts $10,000 to a Roth IRA. How much of the conversion is taxable?