SECURE 2.0 contained a provision that, for federal employees in their early 60s, is worth tens of thousands of dollars a year. Almost no one is using it. The provision created an “enhanced” catch-up contribution limit for participants aged 60, 61, 62, and 63 — a window that aligns remarkably well with the last few years before most federal employees retire.

The numbers are specific, the eligibility is precise, and the effect on a TSP balance at retirement is large. It is also one of the more poorly explained parts of SECURE 2.0 in the materials federal employees tend to read.

What the standard catch-up looks like.

First, a quick baseline. The IRS elective deferral limit for 2026 is $24,500. For participants aged 50 and older, an additional “catch-up” contribution is permitted on top of that. The standard age-50 catch-up for 2026 is $8,000, bringing the total possible employee contribution for participants 50 and older to $32,500.

That $8,000 catch-up is the number on most people’s mental model. It is the catch-up they have heard about, the catch-up their HR system usually defaults to, the catch-up they will hit without doing anything special.

What SECURE 2.0 added for ages 60 to 63.

Section 109 of SECURE 2.0 created an enhanced catch-up for participants who are aged 60, 61, 62, or 63 during the calendar year. The enhanced catch-up is the greater of:

  • $10,000 (indexed for inflation after 2025), or
  • 150% of the regular age-50 catch-up amount in effect for the year.

For 2026, the regular age-50 catch-up is $8,000. 150% of $8,000 is $12,000, which exceeds $10,000. Therefore the 2026 enhanced catch-up for participants aged 60 to 63 is $12,000, in lieu of the standard $8,000 catch-up.

That $4,000 difference — between $8,000 and $12,000 — is the headline. It is $4,000 per year of additional pre-tax or Roth space, available only to participants in those four specific ages.

What the four-year window looks like in total.

A federal employee who turns 60 in 2026 and retires at 62 in 2028 has three calendar years in the window. At the enhanced limit, the total additional catch-up available over those three years is up to $36,000— compared to $24,000 under the standard catch-up. The $12,000 difference, compounded at even a modest 6% over a 25-year retirement, is roughly $50,000 in additional balance.

For an employee who hits 60 in, say, January 2026, the window includes calendar years 2026, 2027, 2028, and 2029 (ages 60, 61, 62, 63). That is the full four years, and $48,000 in additional catch-up capacity over the standard limit. If the employee continues working into age 64 or beyond, the catch-up reverts to the standard $8,000 (indexed).

How it interacts with the rest of the TSP limit.

The enhanced catch-up sits on top of the standard elective deferral limit. The math for a participant aged 60 to 63 in 2026 is:

  • Elective deferral limit: $24,500
  • Enhanced catch-up: $12,000
  • Total employee contribution: $36,500

That figure does not include the agency automatic and matching contributions, which are calculated separately on basic pay and are not affected by the catch-up limit. For a FERS employee contributing the maximum, total TSP contributions in 2026 can exceed $40,000.

Who is eligible, and when the age test is applied.

The age test for the enhanced catch-up is the employee’s age during the calendar year. The TSP uses the participant’s date of birth on file, so the catch-up becomes available starting January 1 of the year in which the participant turns 60.

Important interaction with the 2026 Roth catch-up rule: the enhanced catch-up is subject to the same mandatory Roth treatment for high earners that the standard catch-up is. We cover that rule separately. The enhanced amount does not exempt the contribution from the Roth requirement; it only increases the size.

The mistake I see most often.

Federal employees in their early 60s are routinely contributing the standard $8,000 catch-up when they are eligible for the enhanced $12,000. The reason is almost always that their payroll system was set up years ago with the standard catch-up, and nobody has revisited it. The fix takes five minutes in My Account at tsp.gov.

The second mistake is waiting until the year they turn 60 to think about the catch-up at all. The full four-year window is the point. Maximizing the catch-up in all four years — not just one or two — is where the meaningful dollars live.