How does the catch-up contribution work?

A catch-up contribution is a type of retirement savings contribution that allows people aged 50 or older to make additional contributions to 401(k) accounts and individual retirement accounts (IRAs). When a catch-up contribution is made, the total contribution will be larger than the standard contribution limit.

When did 401k catch-up contributions start?

"But, a lot of people don't focus on retirement until later in life." Catch-up contributions date to 2002, following congressional passage of a tax-reduction bill in 2001 (the Economic Growth and Tax Relief Reconciliation Act).