How to Catch Up on Payments to Your Retirement Accounts: A Guide to Staying on Track for the Future

12/2/2025

As you approach retirement, it’s essential to ensure your retirement accounts are adequately funded. However, life’s unexpected expenses or other financial priorities may have caused you to fall behind on your retirement contributions. If you find yourself in this situation, don’t panic, there are strategies you can employ to catch up on your payments and put yourself back on track to secure a comfortable future.

1. Understand the Contribution Limits

The first step in catching up on your retirement account contributions is understanding the annual limits set by the IRS. Contribution limits vary depending on your age and the type of account. Here's a breakdown of the key limits for common retirement accounts:

401(k) and 403(b) Plans

For 2025, the contribution limit for 401(k) and 403(b) plans is $23,500 for individuals under 50. However, if you're 50 or older, you are eligible to contribute an additional $7,500 in catch-up contributions, bringing the total limit to $30,500. This higher limit helps older savers make up for lost time and take full advantage of tax-deferred growth. If you’re 60-63 you can contribute an additional $11,200 for a total of $34,700.

For 2026, the contribution limits increase to $24,500 for those under 50 with an extra $8,000 for those 50-60, or an additional $11,250 for those 60-64.

Read more: IRA Basics: A Key Step in Your Retirement Planning

Traditional and Roth IRAs

For 2025, the contribution limit for both Traditional and Roth IRAs is $7,000 for those under 50. If you're 50 or older, you can contribute an additional $1,000 as a catch-up contribution, bringing your total contribution to $8,000. This additional contribution is particularly useful if you’ve missed contributions in the past or are trying to catch up on your retirement savings.

For 2026, the contribution limit for an IRA is $7,500 for those under 50, and an additional $1,100 for those over 50 years of age

SIMPLE IRA

For 2025, the SIMPLE IRA employee contribution limit is $16,500, but it is $17,600 for employees of companies with 25 or fewer employees. The catch-up contribution for those age 50 and older is $3,500 ($3,850 for employees of smaller companies), and those ages 60 to 63 can contribute a "super" catch-up of $5,250. The total catch-up limits vary based on the employer's size and contribution election.

For 2026, the SIMPLE IRA contribution limit is $17,000 for employees under age 50. Employees aged 50 and over can contribute an additional $4,000 in catch-up contributions, for a total of $21,000.

SEP IRA

For 2025, SEP IRA contributions allow for up to $70,000 (up from $69,000 in 2024), which is much higher than the limits for a standard IRA. This type of plan is typically used by self-employed individuals and small business owners, making it an attractive option for those who need to boost their retirement savings.

For 2026, The SEP IRA contribution limit is $72,000.

Read more: The Importance of Investing in Your Retirement in Your 20’s

2. Maximize Your Catch-Up Contributions

If you're over 50, the catch-up provisions are designed specifically to help you make up for lost time. If you haven’t been able to contribute the maximum amounts in previous years, now is the time to take full advantage of these higher contribution limits. Here's how you can maximize your catch-up contributions:

Set a Goal: Start by determining how much you need to contribute each month or pay period to reach the maximum contribution limit. This will give you a concrete target and ensure you're consistently putting money into your retirement accounts.

Automate Contributions: Automating your contributions ensures you're consistently contributing to your retirement accounts, even during busy months. Set up automatic transfers to your retirement accounts from your paycheck or checking account. This minimizes the temptation to delay or skip contributions.

Tax Refunds and Bonuses: Consider directing any tax refunds, bonuses, or unexpected windfalls directly into your retirement accounts. These lump-sum contributions can help you catch up quickly.

3. Contribute More During High-Earning Years

If you’re in a position to increase your income, consider using the extra funds to boost your retirement contributions. Whether it’s through a salary raise, side gigs, or an additional part-time job, contributing more in high-earning years can give your savings a significant boost.

4. Consider Roth Conversions or Backdoor Roth IRAs

If you’re making contributions to a Traditional IRA but your income is too high to contribute to a Roth IRA directly, you might want to explore the option of a Roth conversion or a backdoor Roth IRA strategy. This involves converting some of your pre-tax retirement funds into a Roth IRA, where your investments will grow tax-free, and qualified withdrawals in retirement are also tax-free.

This strategy can help you diversify your retirement savings, especially if you expect your tax rate to be higher in retirement.

5. Catch Up on Employer-Sponsored Plans

If you're behind on contributions to an employer-sponsored plan, check whether your employer offers any matching contributions. Many employers match a percentage of your 401(k) contributions, and maximizing your contribution can significantly increase your savings. It’s essentially “free money” that can make up for the times you couldn’t contribute enough on your own.

Additionally, take advantage of any other employer-sponsored retirement savings options, such as profit-sharing contributions. These contributions can help you reach your retirement savings goals faster.

6. Make a Plan to Prioritize Retirement Savings

Catching up on retirement savings may require balancing competing financial priorities. While paying down debt or saving for a home is important, remember that retirement accounts are designed to provide financial security in the future. Set a budget to prioritize retirement savings and consider meeting with a financial advisor to help you allocate your funds appropriately.

7. Review Your Investment Strategy

Sometimes, catching up on retirement savings is not just about contributing more money but also about ensuring your investments are working hard for you. Review your retirement portfolio periodically to ensure your investments align with your retirement goals and risk tolerance. A financial advisor can help you adjust your asset allocation and ensure you’re positioned for growth as you approach retirement.

Catching up on your retirement savings requires discipline, but it's entirely possible if you take proactive steps. By understanding your contribution limits, maximizing catch-up contributions, and prioritizing retirement savings, you can ensure you’re putting yourself in the best position for a financially secure retirement. If you're unsure about the best strategy for your situation, consider speaking with a financial advisor or credit counselor to get personalized advice.

No matter your age, it’s never too late to start taking retirement planning seriously, every contribution you make today brings you one step closer to a more secure financial future.

 

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