The SECURE 2.0 Act, signed by President Biden in 2022, introduced a tax-sheltered savings boost for individuals aged 60-63. Slated to take effect in 2025, eligible workers can put even more money into their retirement accounts during these critical pre-retirement years. Here’s how it works and what it could mean for you.
What “Regular” Are Catch-Up Contributions?
Catch-up contributions are additional savings allowances for individuals aged 50 and older to help maximize retirement accounts. In 2024, these limits allow older savers to contribute beyond the standard $23,000 annual deferral limit:
- Standard contribution Limit for all ages: $23,000
- Standard catch-up contribution for ages 50+: $7,500
- Total contribution limit for 2024: $30,500
What Are the New Super Catch-Up Contributions?
For individuals aged 60-63, the enhanced catch-up contribution limit in 2025 is 150% of the standard age 50+ catch-up limit. Once participants turn 64, they revert to the standard age 50+ catch-up contribution limit.
How Does It Work?
To qualify for the super catch-up contributions, participants must:
- Be aged 60, 61, 62, or 63 (but not 64) at the end of the calendar year.
- Have already contributed the maximum standard deferral amount.
It’s important to note that offering this feature is optional for employers, so check with your plan administrator to see if your plan includes it.
Bottom Line
The SECURE 2.0 Act’s enhanced catch-up contributions offer a valuable opportunity for individuals aged 60-63 to boost their retirement savings during their final working years. If you’re approaching this age group, now’s the time to evaluate your retirement plan and see how you can take advantage of these new limits.
| Participant Age in 2025 | 2025 Standard Annual Deferral Limit | Catch-up Contribution for 2025 | Total 2025 Annual Contribution Limit |
| 50-59 OR 64 or older | $23,500 | $7,500 | $31,000 |
| 60-63 | $23,500 | $11,250 | $34,750 |
