Catch-Up Contributions for Retirement Plans

Catch-up contribution limits for 401(k), Roth IRA, 403(b), and more

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The Internal Revenue Service (IRS) offers retirement savers what are known as "catch-up contributions." You can take advantage of these contributions to add more to your tax-favored retirement plan whether you've saved diligently over your career or if you got a late start planning for retirement.

The IRS imposes limits on how much you can contribute to most retirement accounts each year, and there are limits to catch-up contributions as well.

Key Takeaways

  • You must be at least 50 years old before the end of the year to qualify for catch-up contributions.
  • Catch-up contributions can be made to a traditional IRA, Roth IRA, SIMPLE IRA, SARSEP, 401(k), SIMPLE 401(k), 403(b), or 457(b) retirement plan.
  • The amount of the catch-up contribution will depend on your income for some types of retirement accounts.
  • High-income individuals may not be able to contribute any amount.

Catch-Up Contribution Limits for Traditional and Roth IRAs

You can contribute up to $6,000 to a traditional IRA for the 2022 tax year, the tax return you'll file in 2023. This limit increases to $6,500 in tax year 2023, the return you'll file in 2024. The $6,000 limit is across all IRA accounts you own, whether they're traditional or Roth IRAs. You can add catch-up contributions of $1,000 more, or up to $7,000 or $7,500 in total (depending on the year) if you're age 50 or older.

You can contribute the full $6,000 to a Roth IRA if you earn $129,000 or less per year in 2022, or $204,000 if you're married filing jointly. These limits increase to $138,000 and $218,000 respectively in 2023.

The amount of money you can contribute to your Roth IRA, including your catch-up contribution, may be affected by your modified adjusted gross income (MAGI) and your filing status.

Roth IRA Contributions in Tax Year 2022
If you're 50 or older and your filing status is: and your MAGI is: you can contribute:
Married filing jointly or qualifying widow(er) less than $204,000 up to $6,000 (or $7,000 if older than 50)
Married filing jointly or qualifying widow(er) more than $204,000 but less than $214,000 a reduced amount
Married filing jointly or qualifying widow(er) $214,000 or more zero
Married filing separately and you lived with your spouse at any time during the tax year less than $10,000 a reduced amount
Married filing separately and you lived with your spouse at any time during the tax year $10,000 or more zero
Single, head of household, or married filing separately and you did not live with your spouse at any time during the tax year less than $129,000 up to $6,000 (or $7,000 if older than 50)
Single, head of household, or married filing separately and you did not live with your spouse at any time during the tax year $129,000 or more but less than $144,000 a reduced amount
Single, head of household, or married filing separately and you did not live with your spouse at any time during the tax year $144,000 or more zero

You can make 2022 contributions up until Tax Day for your 2022 return, which is April 18 in 2023.

You can determine the reduced amount you can contribute if you are in one of those affected income ranges by these calculations:

  1. Subtract $204,000 from your MAGI if you are married and filing a joint return or are a qualifying widow(er).
  2. Subtract nothing from your MAGI if you are married and filing a separate return and you lived with your spouse at any time during the year.
  3. Subtract $129,000 from your MAGI if you are a different type of filer.
  4. Divide the resulting number by $15,000 if you are single, head of household, or married and filing a separate return and did not live with your spouse at any time during the tax year.
  5. Divide the resulting number by $10,000 if you are married and filing a joint return, a qualifying widow(er), or married and filing a separate return and you lived with your spouse at any time during the tax year.
  6. Multiply that number by the maximum contribution limit ($6,000 for 2022 or $7,000 if you qualify for catch-up contributions).

Subtract that number from the maximum contribution limit. This is the amount you may contribute, including catch-up contributions.

An Example Calculation

Your Roth IRA contribution limit for 2022 would be $5,600 if you're over 50 years old, married and filing a joint return, and have a modified adjusted gross income of $206,000:

  • ($206,000 - $204,000)/$10,000 = 0.2
  • 0.2 x $7,000 = $1,400
  • $7,000 - $1,400 = $5,600

Catch-Up Contributions for Other IRAs

Different rules apply to SIMPLE IRAs, SEP IRAs, and SARSEPs.

SIMPLE IRAs

If you have a SIMPLE IRA, you can contribute as much as $14,000 in 2022. This increases to $15,500 in 2023. If you participate in another employer-offered retirement plan in 2022, the total amount you can contribute to both plans is $20,500 if you participate in another employer-offered retirement plan, increasing to $22,500 in 2023.

Your limit increases by $3,000 if you're age 50 or older and your employer allows catch-up contributions to your SIMPLE IRA.

Note

A SIMPLE (Savings Incentive Match Plan for Employees) IRA is a retirement savings account that an employer and its individual employees can participate in. It's often offered by small companies instead of a 401(k) retirement plan. The employer generally matches up to 3% of the employee's compensation with a SIMPLE IRA.

SEP IRAs

Catch-up contributions are not permitted in SEP IRAs. These retirement plans receive contributions only from employers.

The maximum amount that an employer can contribute to a SEP IRA in 2022 is the lesser of 25% of the employee's compensation or $61,000. This increases to $66,000 in 2023, but the 25% limit remains the same.

Note

A Simplified Employee Pension (SEP) Plan allows employers to contribute to a traditional IRA that's set up for their employees. Any size business may set up a SEP IRA, including someone who is self-employed.

SARSEPs

A Salary Reduction Simplified Employee Pension plan (SARSEP) is a type of SEP that was set up prior to 1997. Contributions to a SARSEP plan in 2022 must be the lesser of $20,500 in 2022, increasing to $22,500 in 2023, or 25% of the employee's compensation. Again, the 25% limit remains the same from year to year.

But SARSEP plans are eligible for catch-up contributions for employees 50 years of age or older. SARSEP plans can include catch-up contributions of up to $6,500 in 2022, or $7,500 in 2023.

Catch-Up Contribution Amounts for 401(k) Plans

You can generally contribute up to $20,500 from your salary to your 401(k) plan in 2022, or $22,500 in 2023. If you are age 50 or older and your employer allows catch-up contributions, your limit increases by $6,500 in 2022, and by $7,500 in 2023.

Note

A SIMPLE 401(k) plan (Savings Incentive Match Plans for Employees) is for employees of small businesses with 100 or fewer workers.

You can invest up to $14,000 in a SIMPLE 401(k) plan in 2022, increasing to $15,500 in 2023. Your limit increases by $3,000 or $3,500 respectively if you're eligible for catch-up contributions.

Catch-Up Contributions for 403(b) and 457(b) Plans

The 2022 contribution limits for a 403(b) or 457(b) plan are generally the same as for 401(k)s: $20,500 in regular contributions in 2022, increasing to $22,500 in 2023, plus $6,500 or $,7500 respectively more in catch-up contributions if you are eligible.

403(b) Plans

You can contribute an additional catch-up amount to your plan if you're enrolled in a 403(b) plan, you've worked for your employer for at least 15 years, and your employer's plan permits it. The amount is the lesser of the following:

  1. $3,000
  2. $15,000 minus the number of additional catch-up contributions made in prior years because of this rule
  3. $5,000 times the number of years you've worked for this employer, minus the total catch-up contributions made in prior years

Note

A 403(b) retirement plan is provided to employees of:

  • Tax-exempt organizations
  • Public school systems
  • Cooperative hospital service organizations
  • Public school systems organized by Indian tribal governments
  • Certain ministers

The maximum amount that can be contributed to a 403(b) by both you and your employer in 2022 is the lesser of $61,000 or your total compensation, including benefits, for your most recent year of service. The threshold increases to $66,000 in 2023.

457(b) Plans

A 457(b) plan may allow an additional catch-up contribution in the three years before your retirement. The catch-up amount is the lesser of:

  1. The elective deferral limit of $20,500 in 2022 ($22,500 in 2023)
  2. The basic annual limit plus the amount of the basic annual limit not used in prior years, if you're not making 50-or-older catch-up contributions

Note

A 457(b) retirement plan is for state and local government workers.

The maximum amount that can be contributed to a 457(b) by both you and your employer in 2022 is the lesser of $20,500 ($22,500 in 2023) or your total compensation, including benefits.

Frequently Asked Questions (FAQs)

Why do contribution limits change from year to year?

Contribution limits increase over time to adjust for inflation. They usually go up every year or every other year in $500 increments. Catch-up contributions change at a slower rate and are often set for five years at a time.

What is an elective deferral?

Elective deferrals are contributions made by your employer. Other than Roth IRA contributions, they're not included in your gross taxable income. They apply to 401(k) and 403(b) plans, as well as to SIMPLE IRAs and SARSEPS.

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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. IRS. "401(k) Limit Increases to $22,500 for 2023, IRA Limit Rises to $6,500."

  2. IRS. "IRA Year-End Reminders."

  3. IRS. "Retirement Topics - SIMPLE IRA Contribution Limits."

  4. IRS. "SEP Contribution Limits (Including Grandfathered SARSEPs)."

  5. IRS. "Retirement Topics - Catch-Up Contributions."

  6. IRS. "Retirement Topics - 403(b) Contribution Limits."

  7. IRS. "IRC 403(b) Tax-Sheltered Annuity Plans."

  8. IRS. "COLA Increases for Dollar Limitations on Benefits and Contributions."

  9. IRS. "Retirement Topics - 457(b) Contribution Limits."

  10. IRS. "Definitions."

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