Are you making the most of Super-Catch Up Contributions?
The SECURE Act 2.0 has introduced catch-up contribution choices for those aged 50+, designed to help boost your retirement savings.
These enhanced catch-up provisions are available if you're participating in workplace retirement plans like 401(k)s, 403(b)s, governmental 457 plans, and the federal government's Thrift Savings Plan—this follows other SECURE Act 2.0 changes, including revised Required Minimum Distribution (RMD) ages and expanded access to 401(k) plans for part-time employees.
The standard annual contribution limit for workplace retirement plans is reviewed annually and adjusted for inflation if necessary. Beyond this base limit, catch-up contributions allow those 50 and older to save additional amounts. From age 60, an even higher "super catch-up" contribution becomes available, which took effect in 2025.
Here's what you need to know about the different contribution tiers:
- Standard annual contribution limit: $23,500 for 2025 (up from $23,000 in 2024, adjusted annually for inflation).
- Age 50+ catch-up contribution: An additional $7,500 is available for those 50 and older, allowing total contributions of up to $31,000 annually.
- Age 60-63 "super catch-up" contribution: A significantly higher limit of $11,250 for those specifically aged 60-63 (replacing the standard $7,500 catch-up), enabling total annual contributions of up to $34,750 during these peak earning years.
- SIMPLE plan participants: The standard contribution limit is $16,500 for 2025, with a regular catch-up of $3,500 for those 50+ and an enhanced super catch-up of $5,250 for those 60-63.
- For regular Individual Retirement Accounts (IRAs), the annual contribution limit is $7,000 for 2025, with an additional $1,000 catch-up amount available for those over age 50.