Maximize Your Retirement Savings: Understanding 401(k) Catch-Up Contributions

ARTICLE | April 04, 2025

For many individuals, growing older brings a new perspective on financial preparedness. Talks of affording a comfortable retirement often spark urgent questions: “Will I have enough saved? How can I close any savings gap?” Unfortunately, several factors contribute to retirement shortfalls, including taking on a larger mortgage, facing unexpected medical expenses, or covering a child’s education. These realities can leave some retirees feeling cash-strapped and wondering if they’ve prepared well enough for life after work.

Recent surveys suggest that nearly half of today’s retirees have doubts about the adequacy of their nest eggs. Many wish they had been more diligent in contributing to their 401(k) or other qualified plans during their peak earning years. If you worry you may be catching up a bit later in the game, there’s some good news. Catch-up contributions are designed to let certain individuals pump extra money into their retirement plans once they’ve hit a specific age threshold. New legislation, such as the SECURE 2.0 Act, introduces additional avenues and potential benefits for those aiming to strengthen their retirement security. 

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