H.R. 2942House117th Congress (2021-2023)In Committee

To amend the Internal Revenue Code of 1986 to increase the catch-up contribution limit for retirement plans of participants age 62 through 64.

AI-Generated Summary

Updated February 8, 2026 at 2:33 AM UTC

The bill changes the tax code to raise the extra "catch‑up" contribution limits that people aged 62 to 64 can make to retirement accounts. It sets a $10,000 limit for most retirement plans and a $5,000 limit for simple plans, and ties those amounts to yearly inflation adjustments. The changes take effect for plan years that start after December 31, 2022, affecting anyone in that age range who contributes to a qualified retirement plan.

Key Provisions

Increases the catch‑up contribution limit to $10,000 for eligible participants age 62‑64 in non‑simple retirement plans.
Increases the catch‑up contribution limit to $5,000 for eligible participants age 62‑64 in simple retirement plans.
Requires the Treasury Secretary to adjust these limits each year for cost‑of‑living increases, using a base period beginning July 1, 2021.
Applies the new limits to plan years beginning after December 31, 2022.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 30, 2021

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HouseIntro Referral

Introduced in House

April 30, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 30, 2021

Bill Text

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Introduced in HouseIssued April 30, 2021

117th CONGRESS

1st Session

H. R. 2942

IN THE HOUSE OF REPRESENTATIVES

April 30, 2021

Mr. Schweikert introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the catch-up contribution limit for retirement plans of participants age 62 through 64.

Higher catch-up limit to apply at age 62, 63, and 64

(a)

In general

(1)

Plans other than simple plans

Section 414(v)(2)(B)(i) of the Internal Revenue Code of 1986 is amended by inserting the following before the period: ($10,000, in the case of an eligible participant who has attained age 62, but not age 65, before the close of the taxable year).

(2)

Simple plans

Section 414(v)(2)(B)(ii) of such Code is amended by inserting the following before the period: ($5,000, in the case of an eligible participant who has attained age 62, but not age 65, before the close of the taxable year).

(b)

Cost-of-Living adjustments

Subparagraph (C) of section 414(v)(2) of such Code is amended by adding at the end the following: In the case of a year beginning after December 31, 2022, the Secretary shall adjust annually the $10,000 amount in subparagraph (B)(i) and the $5,000 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2021..

(c)

Effective date

The amendments made by this section shall apply to years beginning after December 31, 2022.