Maximizing savings is at the top of the financial to-do list for most people nearing retirement. For those ages 60-63, the IRS has introduced a “super catch-up” under the SECURE 2.0 Act of 2022, allowing you to maximize retirement savings even further starting in 2025.
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The super catch-up allows individuals aged 60 to 63 to contribute an additional $11,250 to eligible retirement plans, such as 401(k)s, 403(b)s and governmental 457 plans. This is in addition to the standard $23,500 annual contribution limit for 2025 and the $7,500 catch-up limit for those over 50. In total, savers in this age group can contribute up to $34,750 annually, provided their plan supports this option.
Notably, the higher contribution amount isn’t on top of the $7,500 regular catch-up limit but replaces it for those in the eligible age range. Christine Benz from Morningstar notes, “If your plan doesn’t allow for such contributions yet, be sure to ask your plan administrator if there are any plans to do so.”
For those who may feel they’ve fallen behind on retirement savings, the super catch-up provides a unique chance to make up ground.
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Depending on your financial strategy, contributions can be made to traditional pretax or Roth accounts. Traditional accounts offer an immediate tax break, while Roth accounts allow for tax-free withdrawals in retirement.
The super catch-up applies only to individuals who are 60 and 63 by the end of the calendar year. Future contribution limits will be indexed to inflation, providing ongoing opportunities to adjust for rising costs.
It’s important to confirm that your employer-sponsored plan offers the super catch-up feature. If it doesn’t, now might be the time to advocate for plan updates.
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If you’re already maximizing contributions to your company plan, you may want to explore additional savings avenues:
