The Super Catch-Up
Your Three-Year Window to Accelerate Retirement Savings
This year, the SECURE 2.0 Act introduces what the IRS has formalized as the "Super Catch-Up" contribution limit. This temporary, age-specific increase, gives a narrow group a meaningful opportunity to accelerate tax-advantaged retirement savings.
Key numbers:
2026 Maximum Contribution: $24,500
Age 50+ Catch-up Contribution: $8,000
Age 60-63 “Super” Catch-up: $11,250
For individuals between 60 and 63, this amounts to more than $35,000 per year into your retirement account. Note that catch-up limits apply to the age you are turning in 2026, even if your birthday is on December 31st. Most of our clients who are able to make these catch-up contributions should also be aware that if FICA earnings (W-2, Box 3) exceed $150,000, catch-up dollars need to be made as Roth contributions. As a refresher, Roth contributions are made with post-tax dollars, but when you take a qualified distribution, you won’t owe taxes on the initial money or the growth. This also means there is a new bucket of money available for Roth IRA conversions (an additional opportunity we review for clients throughout the year).
If you are in either catch-up window, now is the right time to review your deferral election, confirm your plan allows the enhanced contribution, and integrate this into your broader retirement planning picture.
As part of our comprehensive financial planning, let us help you review your:
Payroll contribution elections: Your 401(k) contributions are made through payroll, which means the only way to capture the full 2026 limit is to update your deferral percentage before the year is over. If you wait until December, you may not have enough remaining paychecks to reach the new ceiling.
Pre-tax versus Roth: Based on the aforementioned income limits, the Super Catch-Up can be made as a traditional pre-tax contribution or as a Roth 401(k) contribution. The right choice depends on your expected tax rate in retirement, current bracket, and whether Roth conversion planning is already in motion. There is no universal answer, so it is best to work together to determine the optimal blend.
Coordination with other planning. For business owners who sponsor their own retirement plan, the rules interact with employer contribution limits and plan design. The total annual addition limit (employee + employer contributions) is $72,000 in 2026.
Not sure if this applies to your situation?
We work with business owners approaching retirement to make sure every available planning tool is in use. Schedule a conversation to review your current 401(k) structure and contribution strategy.
Disclosure:
The information presented in this article is intended for general educational purposes and should not be interpreted as individualized financial, investment, tax, or legal advice. Any hypothetical examples, scenarios, or illustrative anecdotes are used strictly to demonstrate financial planning concepts and do not reflect all client results. Because each person’s financial situation is unique, the strategies or ideas discussed may not be appropriate for your circumstances. As an investment adviser representative of a registered investment adviser, we act in a fiduciary capacity and provide advice tailored to each client’s objectives only after adequate understanding of the client’s situation. Before making any financial decisions, please consult with your adviser or another qualified professional.
Neither Hoeven Wealth nor XY Investment Solutions provide tax or legal advice. The tax and estate planning information offered is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
