Standard Catch-Up Contribution Limits (2024)
For those aged 50 and older, the 2024 contribution limits allow for an extra $7,500 in catch-up contributions on top of the $23,000 standard 401(k) deferral limit. This means a person over 50 can contribute up to $30,500 annually to their retirement account.
Higher Catch-Up Limits for Ages 60-63 (2025)
Starting in 2025, SECURE 2.0 increases catch-up contribution limits for individuals aged 60 to 63. These participants can contribute either $10,000 or 150% of the standard catch-up limit, whichever is greater. For 2025, the standard catch-up limit is $7,500, so the new limit for those in this age group would be $11,250. These higher limits apply to 401(k), 403(b), and 457(b) plans but are optional for employers. Some plans may choose not to implement this change.
Qualifications for Higher Catch-Up Contributions
To qualify for these increased contributions, you must be aged 60-63 by December 31st of the year in question and have already contributed the maximum deferral amount. Once you turn 64, the catch-up limit reverts to the standard age 50+ limit.
Roth Contributions for High Earners
SECURE 2.0 also introduces a rule requiring high earners (those with wages over $145,000) to make their catch-up contributions on a Roth basis starting in 2026. This means contributions will be taxed upfront, potentially benefiting your tax situation down the line.
Bottom Line
The SECURE 2.0 "Super Catch-Up" provision for ages 60-63 is designed to help older workers catch up on retirement savings, particularly those who may not have had the chance to save earlier in their careers. Speak to your dedicated wealth advisor for more details on these changes.
Have questions about how these insights and ideas could impact your personalized wealth management strategy? Let’s talk.
This communication is for information and educational purposes only. This is not a recommendation for the sale or investment in any product or strategy or to be perceived as individual advice. Information presented has been prepared from sources believed to be reliable but is not guaranteed and does not represent all available data necessary for making investment decisions. Economic and market forecasts presented herein reflect a series of assumptions and judgments as of the date of this presentation and are subject to change without notice. Forecasts do not consider the specific investment objectives, restrictions, tax and financial situation or other needs of an individual. Actual data will vary and may not be reflected here. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. The opinion expressed by this individual is based on facts and circumstances known at this time, is subject to change and does not reflect the opinions of all financial professionals of XML.
.png?width=300&height=300&name=Untitled%20design%20(34).png)
.png?width=300&height=300&name=Untitled%20design%20(43).png)
