Catch-Up Contributions to Retirement Accounts Boosted By SECURE Act 2.0

Americans approaching retirement age can now squirrel away more money in IRAs, 401(k)s, and other retirement accounts.

golden egg in birds nest with a note saying "retirement" in it
(Image credit: Getty Images)

Catch-up contributions to retirement savings accounts like IRAs and 401(k)s just got a boost from the SECURE 2.0 Act, which was signed into law by President Biden on December 29, 2022. That means people approaching retirement age can pack more into their retirement accounts before they actually retire. This is just one of many changes to the way Americans save for retirement and are taxed in retirement included in the legislation, such as adding a government match for retirement plan contributions and relaxing certain required minimum distribution rules.

Currently, if you're at least 50 years old, the catch-up contribution rules let you put more money in your retirement savings accounts than what is normally allowed for the year. This gives people who delayed saving for retirement – or haven't started yet – a chance to "catch up" a bit and bolster their savings before reaching retirement age.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.