Catch-Up Contribution
An extra amount people 50 and older can contribute to retirement accounts beyond the standard limit.
Catch-up contributions let savers aged 50 and over put additional money into 401(k)s and IRAs above the normal annual limit. They exist to help people accelerate savings as retirement nears, and recent law added an even larger catch-up for a band of ages in the early 60s for workplace plans.
For late-starting savers or high earners trying to maximize tax-advantaged space, catch-ups are meaningful additional room. As with all limits, the exact amounts are inflation-adjusted, so check the current figures.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.