The Catch-Up Contribution: Make Your Next Decade Count

Photo by Ben Collins

Estimate Read Time 5 Minutes

“It’s not too late. It’s a great chance to play smart.”

You’ve worked. You’ve saved. You’ve lived. Now you’re 50. Most people see a countdown. But what if this milestone is a starting line instead?

Enter the catch-up contribution, your secret weapon for the next 10–15 years.

What is a Catch-Up Contribution?

It’s simple: once you hit 50, the IRS lets you put more into your 401(k) and IRA than younger savers. Extra dollars. Extra leverage. Extra compounding power.

2025 Limits:

• 401(k), 403(b), most 457 plans, TSPs: $23,000 + $7,500 catch-up = $30,500

• IRA (Traditional or Roth): $7,000 + $1,000 catch-up = $8,000

Numbers matter. But what really matters is what you do with them.

Why It Matters

The catch-up contribution isn’t just about saving more. It’s about strategy, leverage, and control, especially as you approach retirement.

Here’s why it really matters:

1. Compounding accelerates now
   The next 10–15 years could define the rest of your life. Those extra contributions don’t just add dollars, they give time to work its magic. Every year you contribute more now means more money growing for decades.

2. Taxes become strategy, not obstacle
   Extra contributions reduce your taxable income if you use a traditional 401(k) or IRA. That means you may:

   • Lower your marginal tax bracket, keeping more money in your pocket today.

   • Avoid pushing yourself into a higher bracket by timing withdrawals strategically in retirement.

3. Medicare premiums and income adjustments
   Higher income in retirement can increase Medicare Part B and Part D premiums through Income-Related Monthly Adjustment Amounts (IRMAA). Catch-up contributions can help manage this:

   • By reducing taxable income before retirement, you may avoid or lower IRMAA surcharges.

   • Strategically shifting contributions between pre-tax and Roth accounts allows you to smooth income in retirement keeping Medicare costs lower.

4. Longevity changes the rules
   People are living longer than ever. A 20–30-year retirement isn’t unusual. Catch-up contributions help ensure your wealthspan matches your lifespan giving you financial flexibility to cover longer health and lifestyle needs.

5. Flexibility wins
   Extra contributions give options: retire early, work part-time, fund dreams, or pivot to purpose-driven projects. They’re not just money, they’re freedom.

6. Behavior matters more than rules
   Many people don’t maximize these contributions because they assume it’s “too late” or “too complicated.”

How to Make It Work

1. Max out employer matches. Free money first.

2. Automate contribution bumps. Let technology do the work.

3. Balance pre-tax and Roth. Tax strategy matters.

4. Review investments. Last decade matters most — align risk and growth.

5. Work with a fiduciary. Catching up is more than money; it’s clarity.

A Mindset Shift

Catch-up contributions aren’t just numbers. They’re a statement:

“I am not done. I am intentional. I am in control.”

Those extra dollars don’t just grow, they give freedom, choice, and confidence.

Your Next Step

50 is not a countdown. It’s leverage.

At Longevity Wealth Strategies, we help clients over 50 turn opportunity into action, aligning savings, investments, and longevity with a life rich in purpose.

Schedule Your Wealthspan Review™and see how catch-up contributions can turbocharge your next decade.

Your Next Step

Schedule Your Wealthspan Review™

Disclaimer: The information provided in the linked resources is for educational purposes only and does not constitute investment, tax, or financial advice. Longevity Wealth Strategies is not responsible for the content of external websites. Consult with a licensed professional before making any financial decisions.

Additional Resources

1. IRS 2025 Catch-Up Contribution Limits
   The IRS outlines the contribution limits for retirement plans in 2025, including the increased catch-up contributions for individuals aged 50 and over.
   IRS 2025 Catch-Up Contribution Limits

2. SECURE 2.0 Act: Roth Catch-Up Contributions for High Earners Starting 2026
   A detailed explanation of the SECURE 2.0 Act's provision requiring high earners to make catch-up contributions to Roth accounts beginning in 2026.
   SECURE 2.0 Act: Roth Catch-Up Contributions

3. 2025 Medicare Part B Premiums and Deductibles
   The Centers for Medicare & Medicaid Services provide information on the standard monthly premium and annual deductible for Medicare Part B in 2025.
   2025 Medicare Part B Premiums and Deductibles

4. Medicare Income-Related Monthly Adjustment Amount (IRMAA)
   An overview of how higher income can affect Medicare premiums through the IRMAA, including income thresholds and additional costs.
   Medicare IRMAA Information