Supersizing Real Estate Investing with Catch-Up Contributions
By Carl Fischer
Most real estate investors already know the power of using retirement dollars to build wealth. What few realize is that once you reach age 50, the IRS hands you a new tool, the ability to make “catch-up contributions.” These extra dollars, when directed into a Self-Directed IRA (SDIRA), can create meaningful buying power for property deals, private lending, and other real estate strategies.
At first glance, the numbers may not seem dramatic. For 2025, the standard IRA contribution limit is $7,000. But investors age 50 or older can add another $1,000 on top of that. And thanks to provisions in the SECURE 2.0 Act, individuals between the ages of 60 and 63 will see an even larger bump up to the greater of $10,000 or 150% of the standard catch-up limit, indexed for inflation.
For real estate investors, these extra contributions are more than just incremental savings. They’re additional fuel for long-term deal-making.
Why Catch-Up Contributions Matter Now
Many NREIA members are already in the 50+ age group, and more are approaching it each year. At the same time, real estate markets continue to demand more capital. Down payments are larger, financing is tighter, and competition is stronger. Having even a modest stream of additional retirement contributions can make the difference between missing out on a deal and stepping in as a participant.
The SECURE 2.0 updates underscore this opportunity. For the first time, investors in their early 60s will have the chance to supercharge contributions during peak earning years, precisely when many are looking to shift portfolios toward stable, income-producing assets like real estate.
From Small Numbers to Big Impact
Let’s put the math into perspective.
- A 52-year-old investor contributes the standard $7,000 plus the $1,000 catch-up each year for the next decade. That’s $80,000 in contributions instead of $70,000.
- If those dollars are invested through an SDIRA into rental properties or private lending at an average 8% annual return, the difference over ten years is significant. The investor who maxed out catch-ups could see nearly $116,000 compared to $101,000, a gap of $15,000 simply from using the extra contribution window.
Scale that forward: combine a decade of catch-ups with the higher contribution limits available at ages 60-63, and suddenly you’ve got enough to participate in larger joint ventures, co-invest alongside other retirement accounts, or take on bigger lending opportunities. *
Why an SDIRA Makes It Count
A traditional or Roth IRA invested in mutual funds will also benefit from catch-up contributions, but an SDIRA opens the door to assets that real estate investors already understand and trust. With CamaPlan, investors can use catch-up contributions to:
- Buy into rental properties. Those additional dollars can help cover closing costs, renovations, or operating reserves.
- Provide private loans. Even a few thousand dollars of extra capital can be pooled with other accounts to fund a secured loan to another investor.
- Join partnerships. Many real estate funds and syndications accept SDIRA dollars, and catch-ups can help investors meet minimum thresholds.
- Diversify into related assets. Beyond property, SDIRAs can hold tax liens, notes, or private placements, all areas where small amounts of capital can have an outsized impact.
The key is that every catch-up dollar contributed today is a dollar that grows tax-deferred (traditional IRA) or tax-free (Roth IRA), compounding alongside the rest of the account.
Comparing Two Paths
Consider two investors, both 55 years old, each with $200,000 in an SDIRA. Both contribute $7,000 annually. One stops there; the other adds the $1,000 catch-up contribution each year.
- After 10 years at an 8% annual return, the first investor’s account grows to about $420,000.
- The second, who used catch-ups, ends with nearly $436,000.
That’s a $16,000 difference from simply using the rule Congress created for them. And when you apply those dollars to leveraged real estate deals, the practical buying power is even greater.*
Practical Steps for Investors
For those new to catch-up contributions or SDIRAs, here’s a quick roadmap:
- Confirm eligibility. Catch-ups apply starting in the calendar year you turn 50. Higher limits at ages 60-63 begin in 2025.
- Choose your account type. Traditional and Roth IRAs both allow catch-ups. With a Roth, the after-tax dollars may deliver more flexibility in retirement.
- Open or fund an SDIRA. At CamaPlan, opening an account is straightforward. Funds can come from contributions, rollovers, or transfers.
- Identify your investment. Real estate, private lending, partnerships, and more are all options.
- Work with your custodian. Ensure contributions and transactions are processed in compliance with IRS rules.
The Bigger Picture
Catch-up contributions may look like small line items on an IRS chart. Still, for real estate investors, they represent something larger: control, opportunity, and a chance to put more of your own money to work in assets you understand.
As the rules expand under SECURE 2.0, the window is widening for investors in their 50s and 60s to use tax-advantaged retirement dollars to build wealth through real estate. For NREIA members, the question isn’t whether the extra $1,000 or $10,000 matters. It’s whether you’re willing to let that capital sit unused or put it to work in your next deal.
CamaPlan can support you in turning today’s contributions into tomorrow’s real estate opportunities. With clarity, confidence, and control, you can put your retirement dollars to work in assets you know best.
Carl Fischer is one of the founders and principals of CAMA Self-Directed IRA, LLC (dba CamaPlan). CamaPlan is a national, self-directed tax advantaged plan administrator company headquartered in Ambler, PA.
Members of National REIA can save up to $784, including a free consultation with the founder, one year of VIP customer service, and the opportunity to set up a new account for only $1. Plus, there are no annual fees until your first investment. You’ll also receive one free expedited transaction processing and two complimentary outgoing wires for your real estate deals. Please visit web.iraasset.app/nationalreia for more info.
* Calculations didn’t factor in the tax savings the client would get from traditional contributions. There are even more tax benefits, depending on your tax situation. Talk to your CPA or give us a call. If you have any questions, don’t hesitate to reach out to your CamaPlan account executive.
