Definition
Extra retirement contributions the tax code allows once you reach age 50 (age 55 for HSAs), on top of the standard annual limits. The exact extra amounts are set by the IRS and adjust over time.
Why it matters
The catch-up years often coincide with peak earnings and shrinking family expenses, making them the last great accumulation window. Used fully, the final working decade can rival the previous two.
Example
At 55, a worker adds an extra $5,000 a year of catch-up contributions beyond their usual saving. Over 10 years at 7% growth, the catch-up money alone builds to roughly $69,000.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.