Starting in 2025, some retirement savers will be able to put even more money away for the future, thanks to an update from the SECURE Act 2.0. If you're between the ages of 60 and 63, there's good news: you'll be eligible for a new, higher catch-up contribution limit to your workplace retirement plan.
What’s Changing?
Currently, individuals age 50 and older can make catch-up contributions to their 401(k), 403(b), governmental 457(b), or SIMPLE IRA accounts. In 2025, those turning age 60, 61, 62, or 63 by year-end can contribute even more—this is being called the “super” catch-up.
Here’s what that means in dollars:
- 401(k), 403(b), and 457(b) plans: Up to $11,250 in catch-up contributions (150% of the standard $7,500 limit)
- SIMPLE IRAs: Up to $5,250 in catch-up contributions (150% of the standard $3,500 limit)
These higher limits are in addition to the standard salary deferral limits, and will be adjusted for inflation starting in 2026.
A Quick Example
Margaret turns 61 on November 15, 2025. Because she hits that milestone in the calendar year, she qualifies for the super catch-up limit. If the regular deferral limit is $23,500 in 2025, Margaret can contribute a total of $34,750 to her 401(k) plan.
What You Need to Know
- This new rule applies to 401(k), 403(b), 457(b), and SIMPLE IRA plans.
- Not all employers offer catch-up contributions—check with your plan administrator.
- Once you turn 64, you’ll go back to the standard “age 50+” catch-up limits.
- You must generally max out your regular salary deferral limit before making catch-up contributions.
Why It Matters
This change gives older savers an extra opportunity to boost their retirement savings as they near retirement age. But it also adds complexity—especially around age tracking and contribution limits. That’s why working with a financial advisor can help ensure you’re getting the most from your plan.
Have questions about how this impacts your retirement strategy? Let’s talk about how to make the most of these new limits for your situation.
** Catch-up contributions from IRS: https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000