Savers age 50 and older who are participants in retirement plans are permitted to do “catch-up” contributions of $7,500 in 2025. Add this to the annual elective deferral limit of $23,500, and over-50s can put up to $31,000 into their retirement plans.
This applies to most 401(k) participants, as well as those with 403(b)s, governmental 457 plans, and the federal government’s Thrift Savings Plan.
A subset of older 401(k) plan participants can make even higher catch-up contributions, starting in 2025. SECURE Act 2.0 increases the catch-up contribution limit for those participants who are age 60, 61, 62, or 63.
For these savers, the deferral limit is the greater of $5,000 or 150% of the normal “age 50” catch-up contribution limit ($7,500 in 2025). The 2025 super catch up equals $11,250, which means the total eligible for deferral for this subset is $34,750. This limit will be indexed for inflation starting in 2026.
Workplace plans need to offer this “super catch up” option for workers to be able to make a super catch-up contribution. Not all plans have this feature. Plan participants age 60-63 should check with their retirement plan administrator to see if this option is available.
Once a retirement plan participant reaches age 64, they revert to the age 50 catch-up contribution in effect for that year.
Altogether, the availability of “super catch-up” contributions could be attractive for many folks within the applicable age range and who have the funds available to do so. Consider that a couple where each partner is eligible would be able to contribute nearly $70,000 in total!
-RK