Catch-Up Contributions for Cisco Employees
If you are 50 or older, the IRS allows you to put significantly more into your Cisco 401(k) than the standard limit allows. These extra contributions can make a real difference in the final years before retirement, especially with new “super catch-up” rules. Here is what you need to know.
Key Takeaways
Employees 50 and older can contribute up to $32,500 to a 401(k) in 2026.
Employees age 60–63 can contribute up to $35,750.
Starting in 2026, Cisco employees who earned more than $150,000 in FICA wages in 2025 must make catch-up contributions on a Roth basis rather than pre-tax.
What Are Catch-Up Contributions at Cisco?
The IRS sets a limit on how much you can contribute to a 401(k) each year. In 2026, that standard limit is $24,500. Once you turn 50, you are allowed to contribute even more through catch-up contributions. This lets workers boost their retirement savings in the final stretch of their careers.
For employees 50 and older, the basic catch-up contribution is $8,000, bringing your total contribution limit to $32,500. You become eligible in the calendar year you turn 50, not the day of your birthday. If you will be turning 50 at any point during the year, you are already eligible.
The Super Catch-Up: Ages 60 to 63
Starting in 2025, the SECURE 2.0 Act introduced an even higher limit for older employees. If you are 60–63, you are eligible for a super catch-up contribution of $11,250. This brings the total limit to $35,750. Once you turn 64, your catch-up rate reverts to $8,000.
The super catch-up was designed to give employees an even bigger boost in the years immediately before the usual retirement age, when they are often at or near peak earnings and have a shorter runway to save.
The New Roth Requirement for High Earners
As of 2026, there is an important change for higher-earning Cisco employees. If you earned more than $150,000 in FICA wages from Cisco the previous year, your catch-up contributions must be made on a Roth basis. You can no longer make them pre-tax. If your FICA wages were lower than that, you can choose either. (FICA wages are your Social Security-taxable earnings and can be found in Box 3 of your W-2.)
This rule applies only to catch-up contributions. Your regular contributions up to the $24,500 standard limit can still be made on a pre-tax or Roth basis regardless.
If you are subject to this rule, you will pay taxes on catch-up contributions now rather than in retirement. In exchange, those contributions and their earnings will grow tax-free and can be withdrawn tax-free later on. For many Cisco employees in their 50s and 60s, this is actually a favorable outcome, especially if you expect your tax rate to be similar or higher in retirement.
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Are Catch-Up Contributions Worth It?
For most Cisco employees, yes. The years between 50 and retirement are often the most valuable for building wealth. Many Cisco employees are at (or near) their peak earnings at this age, while expenses that consumed income in earlier decades have likely eased. Catch-up contributions are designed to capture that window, helping you save more in the final years before retirement.
The math is compelling, too. An extra $8,000 a year contributed from age 50, earning a 7% annual return, could grow to more than $150,000 by age 65. For those who qualify for the super catch-up between 60 and 63, putting in an extra $11,250 a year during that four-year window adds even more.
For Cisco employees who are behind on savings, catch-up contributions are one of the fastest ways to close the gap. For those who are on track, they are a way to build an even larger cushion for retirement.
Making the Most of Your Cisco 401(k)
Catch-up contributions are one of the most effective tools available for building retirement savings in the final stretch of your career. But knowing the rules is only part of the equation. Getting the timing, tax treatment, and contribution strategy right takes a broader plan.
At TrueWealth Financial Partners, we can help you make the most of your benefits. We are a fee-only fiduciary firm, which means we do not sell products or earn commissions. Instead, we take the time to understand your unique needs so we can give you a custom strategy that fits with your goals and timeline.
If you’re planning to retire soon, schedule a free 15-minute intro call with our team, and we can get started on a financial plan that works for you.
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FAQs
When can I start making catch-up contributions?
You are eligible starting in the calendar year you turn 50. Your actual birthday does not matter. If you turn 50 on December 31, you can make catch-up contributions for that entire year.
Does Cisco match catch-up contributions?
Unfortunately, no. While Cisco matches standard 401(k) contributions up to 4.5% of your eligible compensation, that match does not apply to catch-up contributions. However, catch-up contributions are still a great way to boost your savings while preparing for retirement.
What happens to my super catch-up limit when I turn 64?
At 64, you revert to the standard catch-up limit of $8,000. You do not lose the ability to make catch-up contributions altogether, just the higher amount available between 60 and 63.
Can I make catch-up contributions to an IRA as well?
Yes. In 2026, IRA catch-up contributions are $1,100 for those 50 and older, on top of the $7,500 standard IRA limit. Contributing to both is a legitimate strategy if you have the cash flow to do so.
When do Cisco catch-up contributions vest?
Immediately. All contributions to the Cisco 401(k) are 100% immediately vested, including your standard contributions, catch-up contributions, and the Cisco employer match.
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