#catch-up-contributions

#catch-up-contributions

Fidelity reports that as of the third quarter of 2025, the average IRA balance was $137,902, while the average 401(k) balance was $144,400. If you have $150,000 saved for retirement, it means that your balance is slightly ahead of the average. And if you're in your 30s or 40s, you may be in pretty good shape. But if you're 55 or older with $150,000 saved for retirement, you may be starting to panic.

This limit was amended under the SECURE 2.0 Act of 2022, and the the annual cost-of-living adjustment will rise to $1,100 in 2026, up $100 from this year's figure. The catch-up contribution limit that applies to most of the 50-and-older worker population will also go up by $500 next year to a cap of $8,000. A higher catch-up limit of $11,250 applies to workers ages 60-63. The IRS clarified that any plan participants who are at least 50 will generally be able to contribute as much as $32,500 per year starting in 2026.