Key Takeaways:
- A change to the SECURE Act 2.0, effective in 2025, allows eligible employees to make catch-up contributions of up to 150% of the standard IRS limits.
- The change applies to employees participating in an eligible employer retirement plan who turn 60, 61, 62, or 63 by the end of the tax year.
- Employees should confirm eligibility with their providers or employers, and employers should ensure they update their plans to accurately track employee ages and contribution limits.
This year, eligible employees can save even more for retirement as part of a change within the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, also known as the super catch-up 401(k) contribution. Learn more about the change, who’s eligible, and how it can help employees nearing retirement boost their long-term savings.
What Is the Super Catch-Up 401(k) Contribution in 2025?
As part of a change in the SECURE Act 2.0, eligible employees aged 60 to 63 can now make an additional contribution beyond the standard IRS limits to help quickly build their savings before retirement. For 2025:
- The super catch-up limit for 401(k)s, 403(b)s, and 457 plans is $11,250.
- The super catch-up limit for SIMPLE IRAs is $5,250.
More about the change:
- The feature is optional for employers. The super catch-up is only available on plans where an employer already has a catch-up contribution option. Review your plan or check with your employer to confirm your eligibility.
- The super catch-up only applies to eligible employees who turn 60, 61, 62, or 63 by the end of the tax year; they can make their contribution anytime during the tax year. People aged 50 to 59 or 64 and older must adhere to the standard contribution limits.
- This change may require employers to update their retirement plans to ensure they’re accurately tracking employees’ ages and applying the correct contribution limits.
What’s the Difference Between the Catch-Up and Super Catch-Up Contribution?
The standard catch-up allows employees over 50 to contribute more to their retirement accounts, including 401(k)s, 403(b)s, 457 plans, and SIMPLE IRAs, to “catch up” on saving as they near retirement. For 2025, the standard catch-up limits are:
- 401(k)s, 403(b)s, and 457 plans: $7,500
- SIMPLE IRAs: $3,500
Several changes were rolled out as part of the original SECURE Act to help make saving for retirement easier. As part of the SECURE Act 2.0, the super catch-up is an additional opportunity for employees who may have started saving later or need to boost their savings right before retirement.
How Much Is the Super Catch-Up Contribution for 2025?
Within the legislation, the catch-up limits are calculated as follows:
- 401(k)s, 403(b)s, 457 plans: The greater of $10,000 or 150% of the standard contribution limit ($7,500)
- SIMPLE IRAs: The greater of $5,000 or 150% of the standard contribution limit ($3,500)
For 2025, the contribution limits are:
| Plan | Age | Standard Annual Deferral Limit | Catch-Up Contribution | Total Annual Deferral Limit |
| 401(k)s, 403(b)s, 457 plans | 50 to 59 and 64+ | $23,500 | $7,500 | $31,000 |
| SIMPLE IRAs | 50 to 59 and 64+ | $16,500 | $3,500 | $20,000 |
| 401(k)s, 403(b)s, 457 plans | 60 to 63 | $23,500 | $11,250 ($7,500 x 150%) | $34,750 |
| SIMPLE IRAs | 60 to 63 | $16,500 | $5,250 ($3,500 x 150%) | $21,750 |
How Blankinship & Foster Can Help You Navigate the New 401(k) Catch-Up Contributions
An essential component of planning for retirement includes staying informed of new legislation that could affect you. At Blankinship & Foster, we specialize in guiding clients through retirement planning to help them maximize their savings so they have enough to retire and support their goals.
Contact us to learn more about how we can help you on your journey, or download our four-part series, The Essential Guide to Retirement Planning, to get started today.