Starting in 2025, retirement savers in their early 60s will have an exciting new opportunity to boost their savings. Thanks to the Secure Act 2.0, individuals aged 60 to 63 will be eligible for increased catch-up contributions—what’s now being called the “super” catch-up contribution. This change aims to help older workers maximize their retirement funds in their final working years.
Who Qualifies for the Super Catch-Up?
If you participate in a 401(k), 403(b), governmental 457(b), or SIMPLE IRA, and you will be between the ages of 60 and 63 by the end of 2025, you qualify for this enhanced contribution limit. However, once you turn 64, you’ll revert to the standard age 50 catch-up contribution limits. It’s also important to note that not all employer-sponsored plans offer catch-up contributions, so it’s best to check with your plan administrator to see if this option is available to you.
How Much More Can You Contribute?
The super catch-up contributions allow older workers to contribute beyond the usual catch-up limits for a few key retirement plans:
- 401(k), 403(b), and Governmental 457(b) Plans: Participants can contribute the greater of $5,000 or 150% of the age 50 catch-up limit (projected to be $7,500 in 2025). That means the super catch-up limit will be $11,250 for 2025.
- SIMPLE IRAs: The new limit is the greater of $5,000 or 150% of the standard $3,500 age 50 catch-up limit, which means SIMPLE IRA participants can contribute up to $5,250 in additional catch-up contributions.
These increased limits will be adjusted for inflation starting in 2026, so they may increase in future years.
Why This Matters for Retirement Planning
This change is a significant advantage for workers in their early 60s who may have fallen behind on their retirement savings or simply want to bolster their nest egg before retirement. The ability to contribute more in the final working years can provide extra financial security, helping retirees better prepare for their future expenses.
However, with these new contribution tiers, tracking eligibility and limits will become more complex. Employers and plan administrators will need to closely monitor participant ages to ensure the correct contribution limits are applied. Employees, too, will need to stay informed about their eligibility to maximize their savings opportunities before turning 64.
Take Action Now
If you’re approaching age 60 and looking to increase your retirement savings, now is the time to start planning. Make sure to review your current contributions, check with your employer about plan options, and strategize how to take full advantage of this opportunity.
With SECURE 2.0, saving for retirement is getting a boost—make sure you take full advantage of these new opportunities!