The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, enacted in late 2022, contained a long list of provisions that are scheduled to roll out over several years. Here’s a look at how the legislation could affect your retirement savings in 2025.
Larger catch-up contributions for those in their early 60s
Starting in 2025, participants in 401(k) or other employer-provided retirement plans who are ages 60 through 63 can take advantage of a provision allowing them to make a catch-up contribution of up to $10,000 or up to 150% of the regular catch-up contribution amount for those 50 and older — whichever is greater. (The IRS hadn’t announced standard 2025 contribution limits at press time.) In 2024, workers 50 and older can make up to $7,500 in catch-up contributions, in addition to the $23,000 limit for those younger than 50, for a total $30,500.
Those who turn 60, 61, 62 or 63 in 2025 can take advantage of this special catch-up contribution.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
You can direct your contributions to a traditional or a Roth 401(k) plan. While contributions to a Roth 401(k) are made with after-tax dollars, withdrawals are tax-free as long as you’re 59½ or older and have owned the account for at least five years. You can contribute to a Roth 401(k) regardless of your income level. And as of 2024, you’ll no longer be required to take minimum distributions from your Roth 401(k) plan when you turn 73.
Starting in 2026, workers age 50 and older who earned $145,000 or more in the previous year will be required to funnel catch-up contributions to a Roth 401(k) plan. This provision of the SECURE 2.0 Act was originally scheduled to take effect in 2024, but the IRS postponed implementation until 2026 after plan providers and employers — particularly those who don’t yet offer a Roth 401(k) — said they needed more time to prepare.
Automatic enrollment
A study by the Vanguard Group, one of the largest 401(k) providers, found that 90% of workers who are automatically enrolled in their employer’s retirement plan remain in the plan. Starting in 2025, businesses adopting new 401(k) or 403(b) plans will be required to automatically enroll new employees at a contribution rate of between 3% and 10% of compensation. They’ll also be required to increase the contribution rate by 1% each year, to a maximum of at least 10% but no more than 15% of compensation.
Employees who don’t want to participate will have to opt out of the plan. Businesses with 10 or fewer employees or start-ups that have been in business for less than three years will be excluded from this requirement.
Tracking down lost 401(k) plans
The Secure 2.0 Act directed the U.S. Department of Labor to create a search tool for individuals who want to track down a former employer’s plan. Starting in 2025, employers will be required to share information about orphaned plans with the Department of Labor, which should make it easier for workers to find lost plans.
In the interim, if you’ve lost track of an old 401(k) plan, search your files for account statements from the plan. These should provide some key data to help your search, such as your account number and the contact information for the plan administrator.
It’s also possible that your employer turned over your 401(k) balance to your state’s unclaimed-property fund. Your state’s treasury department should offer an online service that lets you search for your money.
You can also check the National Registry of Unclaimed Retirement Benefits or missingmoney.com, a database endorsed by state treasurers.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Federal Benefits Pro: I Answer These 2 Questions a LotMany federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
Pickleball Injuries are Getting Out of Hand for Some AdultsAs more older adults take up pickleball, injuries are on the rise. Here's how you can lower your risk and still have a ball.
-
Are You Prepared to Live Longer? MIT AgeLab Answers QuestionsA new measure of longevity readiness indicates that for many Americans, the answer is no — and suggests what is needed to get on track.
-
Government Research Cuts Hit Older AdultsThe Trump administration has slashed funding for medical research, delaying some treatments and cures for health conditions affecting retirees.
-
4 Strategies for Older Adults to Cut Property TaxesBefore you settle your next property tax bill, make sure you're taking full advantage of these tax breaks for older homeowners across the US.
-
A Guide to Starting a Successful Business After 50Age can be an advantage for older entrepreneurs looking to extend their careers or supplement their income in retirement.
-
10 Things You Should Know About Buying a Car Today, Even if You've Bought BeforeIf buying a car is on your to-do list, and it's been a while since you went shopping for a new one, this guide will help avoid any nasty shocks in the showroom.
-
When Helping Mom and Dad Hurts Your WalletNew research shows how assisting an aging parent with expenses can strain your own finances.
