New SECURE 2.0 Super 401(k) Catch-Up Contribution for Ages 60-63

The SECURE 2.0 Act continues to reshape retirement savings in 2025, offering new opportunities for many to strengthen their financial future. Key updates include a higher required minimum distribution (RMD) age and expanded eligibility for 401(k) plans, making it easier for part-time workers to participate.

A major highlight for 2025 is the enhanced catch-up contribution limits for individuals ages 60 to 63. If you’re in this age group, you can now contribute up to $11,250 to your 401(k), 403(b), or governmental 457 plan, far above the standard catch-up amount.

These increased retirement contributions help you maximize your savings during your peak earning years and can lower your taxable income and reduce your overall tax liability.

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

Here’s what you need to know about how the new “super catch-up contributions” work.

Related: IRS Updates Long-Term Capital Gains Tax Thresholds

Standard 401(k) and IRA Catch-Up Contribution Limits

Before we dive into so-called “super catch-ups,” it helps to review standard catch-ups. (Catch-up contributions are additional retirement savings allowances for individuals 50 and older, designed to help boost their retirement savings.)

These provisions allow eligible savers to contribute beyond the standard annual limits in various retirement accounts like 401(k)s and IRAs.

This could help make up for years of inadequate savings or maximize your tax-advantaged retirement funds. However, note that catch-ups are optional for eligible employees.

• For the 2024 tax year (returns you're likely filing now), the standard annual deferral limit was $23,000, and the catch-up contribution limit for those age 50 and older is $7,500.
• That means an active participant 50 or older could contribute up to $30,500 last year.

SECURE 2.0 enhanced catch-up contributions for ages 60-63

Under SECURE 2.0, beginning this year, 2025, individuals ages 60 to 63 are eligible for increased catch-up contributions in their retirement plans.

This applies to 401(k), 403(b), and governmental 457(b) plans that currently offer catch-up contributions. It’s also important to note that this change is optional for employers. So, each plan sponsor will decide whether to implement this feature in their retirement plans.

This enhanced catch-up contribution limit is $10,000 or 150% of the standard age 50+ catch-up contribution limit, whichever is greater.

For example, the catch-up limit for those 50+ for 2024 was $7,500. So, the IRS has announced that for 2025, the enhanced catch-up contribution limit for those 60-63 is $11,250.

To qualify for the enhanced catch-up contributions, participants must meet specific criteria:

• Be 60, 61, 62, or 63 by the end of the calendar year
• Generally already contributed the maximum deferral amount

Note: Once participants turn 64, they revert to the standard age 50+ catch-up contribution limit.

And, of course, catch-up contributions are optional for employees.

2025 Enhanced Catch-up Contribution

New Roth catch-up contribution rules for high-income earners

SECURE 2.0 also includes new provisions regarding Roth contributions for high earners. As Kiplinger has reported, IRS rules for this provision have been delayed until 2026.

However, when that provision kicks in, if a participant's wages exceed $145,000 in the previous year (subject to cost-of-living adjustments), they have to make catch-up contributions on a Roth basis.

Making catch-up contributions on an after-tax Roth basis means paying taxes on your retirement savings during years when you sometimes earn more.

2025 super catch-up contributions: Bottom line

Introducing enhanced catch-up contributions under SECURE 2.0 is part of a broader effort to encourage more workers to save for retirement.

With that in mind, allowing increased savings during key pre-retirement years could help some who haven’t been able to save as much earlier in their careers.

However, whether this is a good idea for you will depend on several factors, including employers' ability and willingness to adapt their plans and systems.

Also:

• Setting aside an extra $11,250 a year might not be practical if you’re juggling other financial responsibilities, like paying down debt or handling medical bills.
• As mentioned, as of 2026, if you earn over $145,000, these extra contributions must go into a Roth account, which means paying taxes upfront. That can reduce your take-home pay and might not make sense if you expect to be in a lower tax bracket in retirement.
• Plus, if you already have a healthy retirement balance, focusing on other goals, like building an emergency fund or investing in more flexible accounts, could be beneficial.

Before making large catch-up contributions, consider your overall finances and priorities to determine whether this strategy is right for you.

Related

• SECURE 2.0 Retirement Savings Changes to Know
• Seven Ways to Reduce Taxes on Social Security Benefits
• 401(k) and IRA Contribution Limits Set for 2025