Super Catch-Up Contributions in 2025
What are Super Catch-Up Contributions?
Super catch-up contributions are enhanced catch-up contributions available to individuals who turn 60, 61, 62, or 63 by the end of the year. This new provision starts in 2025 and is part of the SECURE Act 2.0.
Contribution Limits
| Retirement Plan | Participant Age in 2025 | 2025 Annual Salary Deferral Contribution Limit | Catch-Up Contribution for 2025 | Total 2025 Annual Salary Deferral Contribution Limit |
| 401(k), 403(b), governmental 457(b) | 60-63 | $23,500 | $11,250 | $34,750 |
| SIMPLE IRA* | 60-63 | $16,500 | $5,250 | $21,750 |
*An employee participating in a SIMPLE IRA may have a higher deferral limit.4
Eligibility and Implementation:
To be eligible for super catch-up contributions, participants must be within the specified age range (60 to 63) during the calendar year. It’s important to note that this provision is optional for employers, meaning that each plan sponsor will decide whether to implement this feature in their retirement plans1.
Conclusion:
For those who are able to participate, and whose plan sponsors allow this implementation, this provision of the SECURE Act 2.0 presents a unique opportunity to further increase your retirement savings. As always, if you have questions, or want to talk through anything, please let me know.
Sources:
1. https://www.kiplinger.com/taxes/super-catch-up-contribution-for-age-60-63
2. https://www.lordabbett.com/en-us/individual-investor/insights/retirement-planning/super-catch-up-contributions-in-2025-what-retirement-investors-n.html#:~:text=The%20deferral%20limit%20is%20the,for%20inflation%20starting%20in%202026
3. https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
4. https://www.lordabbett.com/en-us/individual-investor/insights/retirement-planning/the-simple-ira-isn-t-so-simple-after-all.html
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
