Catch-Up Contributions and the Apple 401(k)
If you're an Apple employee age 50 or older, 2026 brings important changes to how you can save in your 401(k). The IRS has increased contribution limits, and the SECURE 2.0 Act has introduced new rules that could significantly impact your retirement strategy.
Key Takeaways
Apple employees age 50 and older can contribute an additional $8,000 in catch-up contributions to their 401(k).
Employees age 60–63 get an enhanced super catch-up contribution of $11,250.
If you earned $150,000+ from Apple in 2025, all catch-up contributions must be Roth (after-tax) starting January 1, 2026.
2026 Catch-Up Contribution Limit
Standard Catch-Up
In 2026, the standard IRS limit for employee 401(k) contributions is $24,500. Starting in the calendar year that an employee turns 50, they can contribute an additional $8,000 to their 401(k), for a grand total of $32,500.
This provision is designed to help employees who are in their peak earning years accelerate their retirement savings in the final stages of their career.
Super Catch-Up
Beginning in 2022, the SECURE 2.0 Act created a special provision for employees between the ages of 60 and 63. If you're in this age range, you can contribute an additional $11,250 instead of the standard $8,000 catch-up. This would make your total contribution limit would be $35,750 for 2026.
At age 64, employees lose eligibility for the super catch-up contribution and revert to the standard $8,000 increase.
Eligibility
All Apple employees who participate in the 401(k) plan are eligible for catch-up contributions from the year in which they turn 50. There are no additional service requirements or restrictions beyond age.
To make catch-up contributions to your Apple 401(k), you don't need to wait until your actual birthday. If you turn 50 at any point in 2026, you're eligible to make catch-up contributions starting January 1, 2026. The same is true for the super catch-up contributions. If you will turn 60 in a given calendar year, you are eligible for the super catch-up at the start of that year.
Major Change for High Earners: Mandatory Roth Catch-Up Contributions
The biggest change affecting Apple employees in 2026 is the new Roth catch-up requirement for high earners. Starting January 1, 2026, if you earned more than $150,000 in wages from Apple in 2025, all of your catch-up contributions must be made on a Roth (after-tax) basis.
What This Means for You
According to the new SECURE 2.0 rule, if you earned more than $150,000 in 2025:
Your regular contributions up to $24,500 can still be made to a traditional (pre-tax) 401(k)
Any catch-up contributions beyond that limit must go into a Roth 401(k)
This applies whether you're making the standard $8,000 catch-up or the $11,250 super catch-up
However, if you earned $150,000 or less in 2025, you can continue making catch-up contributions to either a traditional or Roth 401(k) as you prefer.
Why the Roth Requirement Matters
This mandatory Roth provision represents a significant shift in tax planning for high-earning Apple employees. The key is the distinction between standard and Roth 401(k) contributions.
Traditional pre-tax contributions are taken from your income before taxes are applied. This reduces your current taxable income. Then, in retirement, your withdrawals will be taxed as ordinary income.
Roth contributions are made with after-tax dollars. The money has already been taxed before it is invested in your 401(k). The money will grow tax-free in your 401(k) and be withdrawn tax-free in retirement.
For high earners accustomed to receiving an upfront tax deduction on catch-up contributions, this change means you'll pay taxes on those dollars now rather than later. Depending on your contribution amount and tax bracket, this could increase your 2026 tax bill by several thousand dollars.
However, while losing the immediate tax deduction may feel like a setback, Roth contributions still offer significant long-term advantages. The tax-free growth and withdrawals can be particularly valuable if you expect to be in a higher tax bracket later or if tax rates increase in the future.
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Benefits of Using Catch-Up Contributions
1. Accelerated Wealth Building
Catch-up contributions allow you to significantly increase the amount of money growing tax-advantaged in your 401(k). An extra $8,000 per year may not sound dramatic, but over a decade with compound growth, it adds up quickly. If you max out catch-up contributions from age 50 to 65 and earn an average 7% annual return, that extra $120,000 in contributions could grow to over $200,000.
The super catch-up for ages 60-63 provides an even more powerful boost during those critical years right before retirement.
2. Capturing Peak Earnings
Many tech employees reach their highest earning years in their 50s and early 60s. You've likely climbed the career ladder, potentially moved into senior or leadership roles, and your RSU grants may be at their most valuable. Catch-up contributions let you translate these peak earnings into retirement savings without being constrained by the standard contribution limits that apply to younger employees.
3. Making Up for Lost Time
Not everyone starts saving aggressively for retirement in their 20s or 30s. Maybe you prioritized paying off student loans, saving for a home, or funding your children's education. Perhaps you changed careers, took time off, or faced financial setbacks. Catch-up contributions provide a mechanism to accelerate your savings and close the gap between where you are and where you need to be for a comfortable retirement.
5. Complementing Other Apple Benefits
Catch-up contributions work alongside Apple's other valuable benefits to build comprehensive retirement security.
Your RSUs provide equity compensation
The ESPP offers discounted stock purchases
The 401(k) match adds to your retirement savings
By maxing out catch-up contributions, you're layering additional tax-advantaged savings on top of these other benefits, creating a more diversified and robust retirement portfolio.
How to Set Up Catch-Up Contributions
Log into Fidelity NetBenefits: Access your Apple 401(k) account through Fidelity's website at netbenefits.com or through the Fidelity mobile app.
Navigate to Contribution Elections: Look for the section where you can adjust your contribution percentage. This is typically labeled "Change Contributions" or "Update Contribution Rate."
Set Your Contribution Percentage: Determine what percentage of your salary you need to contribute to reach your desired annual total. Remember that Apple allows contributions up to 75% of eligible pay on a pre-tax or Roth basis.
Specify Roth if Required: If you earned more than $150,000 from Apple in 2025, make sure any contributions beyond $24,500 are designated as Roth contributions. Fidelity's system should help enforce this requirement, but it's important to verify your elections are set up correctly.
Consider Using the Contribution Maximizer: Apple's 401(k) plan offers a contribution maximizer feature through Fidelity. This tool helps you spread your contributions evenly throughout the year to ensure you capture Apple's full employer match (remember, Apple does not offer a true-up, so front-loading your contributions could cause you to miss out on matching dollars later in the year).
Review and Confirm: Double-check all your elections before submitting. Make sure you understand how the changes will affect your paycheck and that your total contributions won't exceed the annual limits.
Monitor Throughout the Year: Check your account periodically to ensure contributions are being processed correctly and that you're on track to meet your savings goals.
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FAQs
When can I start making catch-up contributions at Apple?
You can start making catch-up contributions beginning in the calendar year you turn 50. If you'll be 50 at any point during 2026, you're eligible to make catch-up contributions for the entire year.
I'm turning 60 in 2026. Can I use the super catch-up contribution immediately?
Yes. If you turn 60, 61, 62, or 63 at any point during 2026, you're eligible for the enhanced $11,250 catch-up contribution for the entire year. The eligibility is based on the age you'll be by December 31, 2026, not your age on January 1.
Can I split my catch-up contributions between traditional and Roth?
Only if you earned less than $150,000 from Apple in 2025. If you earned more than that, all catch-up contributions must be Roth.
Does Apple match catch-up contributions?
No, Apple's match applies only to your regular contributions up to 6% of eligible compensation, not to catch-up amounts.
Does the mandatory Roth rule apply to my IRA?
No, the mandatory Roth catch-up rule only applies to employer-sponsored retirement plans like 401(k)s. IRA contribution rules remain unchanged.
Can I make catch-up contributions if I'm no longer working but still at Apple?
No, catch-up contributions are elective deferrals from your paycheck, so you must be actively receiving compensation from Apple to make them. If you're on unpaid leave or have separated from Apple but haven't rolled over your 401(k), you can't make new contributions, including catch-up contributions.
What happens to my catch-up contributions if I leave Apple?
Your catch-up contributions remain in your 401(k) account and are fully yours. All contributions to the Apple 401(k) are immediately vested, including catch-up contributions. When you leave Apple, you have several options for what to do with your 401(k) account. You can:
Leave the money in the Apple 401(k)
Roll it over into a new employer's plan
Roll it into an IRA
Withdraw it as a lump sum (this is rarely wise, and can result in significant penalties)
Ready to optimize your retirement strategy?
At TrueWealth Financial Partners, we specialize in helping tech employees navigate complex compensation packages and retirement planning. As a fee-only fiduciary, we're committed to providing advice that's always in your best interest.
Schedule a free 15-minute consultation to discuss how we can help you save more for retirement.
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