You May Not Know About This Rule That Could Boost Your Retirement Savings

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You May Not Know About This Rule That Could Boost Your Retirement Savings By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: 8 Secrets for a Happy Retirement Financial Experts Reveal a Major Mistake Retirees Make The Retirement Withdrawal Rule That Can Quietly Backfire After Age 72 How to Build Retirement Savings at 55 — Even If You’re Behind The Sneaky Social Security Scams Targeting Retirees in 2026 — And the One Rule That Keeps You Safe See full bio Published: Mar 6, 2026 4 min read Getty Images Saving smartly for retirement could be the difference between having enough money to live the life you want and struggling to get by. For retirees, one tactic that can help give your savings a boost are catch-up contributions to retirement savings accounts. Catch-up contributions allow savers who are age 50 or older to invest money in their retirement savings accounts beyond the typical IRS limit. But few eligible savers are taking advantage: Vanguard’s “How America Saves 2025” report found that only 16% of participants 50 or older made catch-up contributions in plans that offered them in 2024. Must ReadExperts are Bullish on Gold — Here's How to Get InWhy Retirees Are Turning to Gold as a Buffer Against Stock Market LossesWarren Buffett on Market Volatility — and 3 Ways You Can Take Advantage Knowing how much you can contribute to your portfolio the moment you turn 50 can help you build your nest egg faster. These laws are designed to help you save money in the future, allowing you to reduce your tax bill and grow your portfolio at the same time.

Gold Investor Kit Offer: Sign up with American Hartford Gold today and get a free investor kit, plus receive up to $20,000 in free silver on qualifying purchases The power of catch-up contributions Catch-up contributions let savers age 50 or older boost their annual contribution limits for their 401(k) and individual retirement account (IRA) plans. Maxing out your regular contributions and the catch-up contributions acts as a sprint to the finish in your pre-retirement years. Catch-up contributions can also help lower your tax bill since contributions to 401(k)s and traditional IRAs are tax deductible. The IRS determines how large catch-up contributions can be each year, as it does with regular contributions. Be sure to look up the rules and make sure you are eligible before contributing. Due to recent legislation, high-income earners — those who make more than $150,000 in a year — are required to make their catch-up contributions as Roth contributions. Roth contributions are made with after-tax dollars, but you won’t have to pay taxes on qualified withdrawals of your earnings. Pet Protection: See How Spot Pet Insurance Can Help Your Dog or Cat Don’t forget about RMDs Required minimum distributions (RMD) are mandatory withdrawals from tax-deferred retirement savings accounts, including 401(k)s and IRAs. Savers have to take RMDs at age 73, or 75 if they were born in 1960 or later. It’s important to keep RMDs in mind when retirement planning and making contributions to your savings accounts. RMDs are taxable, so they’re critical to think about when tax planning for your retirement. While tax-deferred accounts come with RMDs, Roth accounts do not. Check your employer’s plan to ensure you are capitalizing on contribution matches and catch-up contributions in a way that makes sense for your retirement and tax planning. Maxing your contributions can help you make more of your money work hard for you now so you can tap it for a comfortable retirement later. Extra Money: Get up to $1,000 in stock when you fund a new active SoFi invest account Must ReadExperts are Bullish on Gold — Here's How to Get InWhy Retirees Are Turning to Gold as a Buffer Against Stock Market LossesWarren Buffett on Market Volatility — and 3 Ways You Can Take Advantage