IRSFinal Rule

Catch Up Contributions

Finance & BankingLabor & Workplace

Summary

This IRS rule allows people age 50 and older to save extra money in their retirement accounts beyond the normal annual limits. This helps older workers boost their retirement savings during their peak earning years when they may have more money to set aside.

Key Points

  • 1Workers aged 50+ can contribute additional amounts to 401(k)s, IRAs, and similar retirement accounts on top of the standard yearly limits
  • 2The 'catch-up' contributions are designed to help people who started saving for retirement late or want to increase their nest egg before retirement
  • 3These extra contributions receive the same tax advantages as regular retirement savings, meaning the money grows tax-free until withdrawal
  • 4Employers may offer these catch-up options, but they are not required to do so for their employees
  • 5The specific amount allowed for catch-up contributions is adjusted annually based on inflation

Key Dates

Published

September 16, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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