Written By: The Advisory Team

If you’re turning 60, 61, 62, or 63 this year, you can supercharge your retirement savings starting in 2025. Thanks to the SECURE 2.0 legislation, workplace retirement plans like 401(k), 403(b), and 457(b) now include a new “super catch-up” contribution option designed specifically for people in this age group. Here’s what you need to know to take full advantage of this new legislation.

What Are Super Catch-Up Contributions?

Catch-up contributions allow older workers to save more for retirement by exceeding the standard annual deferral limits. The regular catch-up for those aged 50 and older is already a familiar feature, but starting in 2025, individuals aged 60–63 can contribute even more under the new “super catch-up” provision.

Here’s the breakdown for 2025:

  • Regular Deferral Limit: $23,500
  • Regular Catch-Up Contribution (for 50+): $7,500 for a total of $31,000
  • Super Catch-Up Contribution (for 60-63): $11,250 for a total of $34,750

Who Qualifies?

The super catch-up contribution applies to those who turn 60, 61, 62, or 63 at any point during 2025. Even if you’re only in this age group for part of the year, you’re still eligible for the full super catch-up amount.

Examples:

  • Catherine’s Opportunity: Catherine turns 60 on December 31, 2025. She qualifies for the full super catch-up, even though she’s only 60 for one day that year.
  • William’s Limitation: William turns 64 during 2025. He isn’t eligible for the super catch-up but can still make the regular catch-up contribution of $7,500.

Important Notes

  1. Plan-Specific Rules: The super catch-up contribution is optional for retirement plans, meaning your employer must opt in for it to be available. Check with your plan administrator to confirm eligibility.
  2. Not Pro-Rated: Eligibility is based on your age by December 31, 2025, so you can make the full super catch-up contribution regardless of when your birthday falls during the year.

How to Get Started

  1. Review Your Plan Details: Confirm that your retirement plan offers the super catch-up option.
  2. Maximize Contributions: If possible, aim to contribute the full amount ($34,750) to take advantage of the increased limits.
  3. Consult Your Advisor: If you’re unsure about your eligibility or need help planning your contributions, reach out to a financial advisor for guidance.

Need help navigating the changes? Our team is here to guide you every step of the way. Contact us today to learn how you can make the most of this!

Information provided should not be relied upon for tax, legal, or accounting advice, as it is intended for informational purposes only. You should consult your own tax, legal, and accounting professionals before engaging in any transactions.