What is Catch-up contribution?
A catch-up contribution is an extra amount that older savers in the US may add to a 401(k), IRA or similar plan above the normal yearly limit. It starts at age 50, and some 401(k) savers aged 60 to 63 can add a larger catch-up.
Why Catch-up contribution matters
It lets people who saved little earlier put more away in the years closest to retirement.