Do you have questions about your options when it comes to saving for retirement? With limits, mechanisms, and savings opportunities changing regularly, we want to help keep you informed and prepared! This article is to written to inform you about a feature of the Secure 2.0 Act, passed in 2022, which sets a higher catch-up contribution limit for taxpayers aged 60-63, allowing for “super catch-up” contributions to most retirement plans.
2025 Deferral and Catch-Up Contribution Limits
To provide some background, let’s first look at the traditional deferral limits and catch-up contributions in place. Congress sets annual participant salary deferral limits for retirement savings plans, like 401(k)s, 403(b)s, and other employer matched plans. The limit on employee elective deferrals for 2025 is $23,500.
Starting at age 50, individuals are allowed additional catch-up contributions to accelerate their savings. The 2025 limit is $7,500, as it was in the prior year. Thus, the total contribution limit for participants in most 401(k), 403(b), and related plans who are 50 and older is $31,000.
“Super Catch-Up" Contributions
So, what is a “super catch-up” contribution? To encourage even more robust retirement savings, under Secure 2.0 Act, Section 109, Congress included a higher catch-up provision for individuals 60-63 years old. In 2025, this group can contribute the standard $23,500 plus the enhanced catch-up amount of $11,250 annually, bringing their total contribution limit to $34,750.
If you are in the 50 plus or 60-63 age groups, we encourage you to take advantage of the saving opportunities available under these guidelines and maximize your use of tax-advantaged retirement funds. If you have questions about how to implement this or about how it might impact your taxes, we’re happy to help.
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