Should You Still Contribute to a 401(k) After Age 60?

As retirement approaches, many people begin asking an important question: Does it still make sense to contribute to a 401(k) after age 60?

The short answer: for many people, yes — but it depends on your income, tax situation, and retirement timeline.

With updated retirement laws, higher catch-up limits, and longer life expectancies, contributing later in your career can still play a powerful role in your financial strategy.

Let’s break it down.

✅ The Benefits of Contributing to a 401(k) After Age 60

1. You Can Make Catch-Up Contributions

If you’re age 50 or older, the IRS allows you to contribute more than the standard limit.

For 2025–2026 planning purposes:

• Standard 401(k) contribution limit applies
• Catch-up contributions allow additional savings
• SECURE 2.0 introduces enhanced catch-up rules for ages 60–63 (depending on employer plan adoption)

This creates a major opportunity to accelerate retirement savings during your highest-earning years.

2. You May Still Receive Employer Matching

If you’re still working and your employer offers a match, contributing to your 401(k) is often a guaranteed return.

Even after age 60:

• Employer matching does not stop automatically
• You can continue receiving contributions as long as you’re eligible
• Some plans even allow Roth matching options

👉 Skipping contributions could mean leaving free money on the table.

3. Continued Tax Advantages Can Reduce Your Tax Bill

Traditional 401(k) contributions reduce your taxable income, which can be extremely valuable if you’re in a high tax bracket late in your career.

Benefits include:

• Lower current-year taxes
• Tax-deferred growth
• Potential smoothing of income before retirement

For high earners, this strategy can significantly improve tax efficiency.

⚠️ Important Consideration: Required Minimum Distributions (RMDs)

Under current rules:

• RMDs typically begin at age 73 (or later, depending on birth year)
• You must withdraw a minimum amount annually from traditional retirement accounts
• Failing to do so can trigger penalties

However, there’s an important exception:

Still Working Exception

If you’re still employed and don’t own more than 5% of the company:

• You may be able to delay RMDs from your current employer’s 401(k)

This makes continued contributions even more attractive for late-career professionals.

401(k) vs. Other Options After Age 60

Depending on your goals, it may make sense to combine strategies:

Roth 401(k) or Roth IRA

• Contributions made with after-tax dollars
• Tax-free withdrawals later
• Useful if you expect higher future tax rates

Brokerage Accounts

• No contribution limits
• Greater flexibility
• Helpful for income planning before RMD age

Coordinated Strategy

Many retirees benefit from layering multiple account types to manage taxes more efficiently in retirement.

When It Might Not Make Sense to Keep Contributing

Contributing after 60 may not be ideal if:

• You need liquidity in the short term
• You expect significantly lower income next year
• You lack an emergency fund
• You are already facing high RMD exposure
• Your employer does not offer a match

This is where personalized planning matters most.

Key Takeaway: It’s Not About Age — It’s About Strategy

Age alone shouldn’t determine whether you continue contributing to a 401(k). The real questions are:

• How long will you keep working?
• What tax bracket are you in now vs. later?
• Do you have other income sources?
• How will RMDs impact your future taxes?

A coordinated retirement strategy can help ensure your savings last — and work more efficiently.

Frequently Asked Questions (AEO Section)

Should I stop contributing to my 401(k) at 60?

Not necessarily. Many people benefit from continued contributions, especially if they receive employer matching or tax deductions.

Can I contribute to a 401(k) after age 70?

Yes, if you’re still working and your employer allows it.

Do 401(k) contributions reduce taxable income after 60?

Yes — traditional 401(k) contributions still reduce taxable income regardless of age.

When do RMDs start?

Currently, RMDs generally begin at age 73, depending on your birth year.

Final Thoughts

Contributing to a 401(k) after age 60 can be a smart move — but only when aligned with your broader retirement and tax strategy. Rules continue to evolve, and small decisions today can have long-term consequences.

If you want help evaluating how these rules apply to your situation, working with a fiduciary advisor can provide clarity and confidence.

📌 Call to Action

Want help optimizing your retirement strategy?
A fiduciary advisor can help you understand how today’s retirement rules affect your long-term income, taxes, and peace of mind.

 

Global View Capital Management (GVCM) is an affiliate of Global View Capital Advisors (GVCA). GVCM is a SEC Registered Investment Advisory firm headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262.650.1030. Registration as an Investment Advisor does not imply a certain level of skill or training. Ryan Peca is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at www.adviserinfo.sec.gov Global View Capital Insurance Services (GVCI) is an affiliate of Global View Capital Advisors (GVCA). GVCI services offered through Experior Financial Group, ASH Brokerage, and/or PKS Financial. GVCI is headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262-650-1030. Ryan Peca is an Insurance Agent of GVCI.