Using Catch-Up Contributions to Secure the Retirement Gold Medal
Every four years, the Winter Olympics remind us of one important truth: Nobody coasts to the finish line.
Not the downhill skier flying at 80 miles per hour, Not the speed skater leaning into the final turn. And definitely not the cross-country skier who somehow still has energy after what looks like 47 straight uphill miles (unless you’re that cross country skier from Norway - WOW!).
When the finish line is in sight, Olympians don’t slow down. They push harder. Your final working years before retirement are the same way.
If retirement is the finish line, then your 50s and early 60s are the final stretch. And this is not the time to glide. This is the time to sprint. That’s where catch-up contributions come in.
The “Extra Lap” Advantage
In many Winter Olympic events, athletes train for years for one moment. And when that moment comes, they give everything they have.
The IRS does something similar for retirement savers over age 50. It gives you an extra opportunity—an extra lap, if you will. Once you turn 50, you’re allowed to contribute more to your retirement accounts than younger workers.
Here’s what that means:
You can contribute an extra $8,000 to your 401(k) (and $11,250 if you’re age 60-63).
You can contribute an extra $1,100 to your IRA.
If you have an HSA (Health Savings Account), you can also make a catch-up contribution there (after age 55).
Why does this matter?
Because life doesn’t always follow a perfect training schedule.
Maybe your 30s were busy raising kids. Maybe your 40s were spent paying for braces, college tuition, or both at the same time (which deserves its own Olympic medal). Maybe you simply couldn’t max out your retirement savings every year.
Catch-up contributions are your chance to make up ground in the final stretch.
The Power of the Final Push
Think about cross-country skiing. It’s long. It’s exhausting. And it requires pacing. But when athletes see the finish line, they don’t think, “Well, I’ve come this far. I’ll just glide in.” They dig deep.
The last 10–15 years before retirement can be some of your most important saving years.
Why? Because:
These are often your highest earning years.
You may have fewer expenses (goodbye daycare!).
You have a clearer picture of what retirement will cost.
Let’s say someone contributes an extra $9,100 per year (that’s the 401(k) and IRA catch-up combined) for 10 years.
That’s $91,000 in additional contributions. And that’s before any investment growth (lots of rules around tax deductibility vs. just being able to contribute - check with your financial advisor and tax professional to see what you may be able to do).
That extra money could mean:
More travel.
Less stress about market ups and downs.
Greater flexibility when you retire.
Or simply more peace of mind.
That’s not small change. That’s meaningful.
Don’t Wipe Out Near the Finish Line
Let’s talk about downhill skiing. One small mistake near the bottom of the course can erase an otherwise great run. In retirement planning, the mistake we sometimes see is coasting too early.
People think:
“I’m almost there.”
“I’ve saved enough.”
“It’ll probably work out.”
But “probably” is not a strategy.
The final working years are your chance to strengthen your position. Catch-up contributions are one of the simplest and most powerful tools to do that.
They help boost your savings while you still have earned income. They may reduce your taxable income today. And they give your investments more fuel heading into retirement.
That’s a strong finish.
The Clock Is Ticking (Like the Olympic Timer)
There’s also something important happening right now.
The deadline to make prior-year IRA and HSA contributions is April 15. That means there is still time to make a contribution for last year—but not for long. Every year, some people miss this opportunity simply because they didn’t act in time.
In the Olympics, if you’re late to the starting line, you don’t get a second chance.
Retirement deadlines are a little more forgiving—but once April 15 passes, the window for prior-year contributions closes for good. If you’re eligible to make a catch-up contribution and haven’t yet, now is the time to check.
Teamwork Wins Medals
Ice hockey teams don’t win gold without a plan. They practice. They communicate. They adjust.
Retirement planning works the same way.
You may be the one earning the paycheck, but building a strong retirement plan often involves a team — your spouse, your tax professional, and your financial advisor. Catch-up contributions are one of those strategic adjustments that can make a real difference in the final period of the game.
Sometimes the smartest move isn’t flashy. It’s steady. It’s intentional. It’s making sure you’re using every rule to your advantage.
If you’re over 50 and not taking advantage of catch-up contributions, it’s a bit like leaving your best players on the bench during the championship game.
Are you taking full advantage of catch-up contributions and other retirement strategies? Not sure? We’d be glad to help. For a free, 100% no obligation analysis of your retirement plan, email us at Brian@ChisholmWM.com
