WHAT YOU NEED TO KNOW
With the introduction of the SECURE 2.0 Act, retirement planning has taken a step forward. Starting in 2025, a new provision known as the “super catch-up” contribution allows individuals aged 60 to 63 to contribute more to their 401(k) accounts, providing an opportunity to bolster retirement savings during a critical time.
Super Catch-Up Contributions: A Closer Look
For those in the 60 to 63 age bracket, the SECURE 2.0 Act introduces a unique opportunity to enhance their retirement savings. In 2025, eligible participants can contribute an additional $11,250 to their 401(k) plans, above and beyond the standard limits. This new contribution category is designed to help individuals nearing retirement age increase their financial security and better prepare for the future.
Maximizing 401(k) Contributions in 2025
The contribution landscape for 401(k) plans in 2025 includes several tiers:
- Regular contribution limit: $23,500
- Catch-up contribution (for ages 50+): $7,500
- Super catch-up contribution (for ages 60 to 63): $3,750
Which Accounts Qualify for Super Catch-Up Contributions?
Super catch-up contributions are permitted for specific types of employer-sponsored retirement accounts that already allow standard catch-up contributions. These include:
- 401(k) plans
- 403(b) plans
- Governmental 457(b) plans
- Thrift Savings Plans
Planning for Retirement
The new super catch-up provision underscores the importance of strategic retirement planning, especially for those approaching retirement age. If you believe you quality, you should consult your benefits officer to ensure you are eligible for the super catch-up contributions. Confirm your plan allows for it and steps you need to take to contribute the maximum. Consulting with a financial advisor can help you make informed decisions about your 401(k) contributions and explore additional strategies to build a secure retirement income. Contact us if you have any questions.
