There’s a big benefit that started in 2025 for certain retirement plan savers to super charge their contributions.
What is it?
The super catch-up contribution is an enhanced catch-up contribution limit specifically for individuals in a narrow age range. It allows eligible participants to save more in their workplace retirement plans than the standard “age 50 and over” catch-up contribution.
Who is eligible?
- Age: Participants must be aged 60, 61, 62, or 63 by the end of the calendar year to qualify for the super catch-up. Once an individual turns 64, they revert to the standard age 50+ catch-up contribution limit.
- Plan Type: It applies to 401(k), 403(b), and governmental 457(b) plans, as well as SIMPLE IRAs, provided the plan already offers catch-up contributions. Not all plans are required to offer catch-up contributions, so participants should check with their plan administrator.
Contribution Limits (for 2025):
- For 401(k), 403(b), and governmental 457(b) plans: The super catch-up contribution limit for ages 60-63 is $11,250. This is in place of the standard $7,500 catch-up contribution for those age 50 and over. This means an eligible participant could contribute a total of $34,750 ($23,500 regular limit + $11,250 super catch-up) in 2025.
- For SIMPLE IRAs: The super catch-up limit for ages 60-63 is $5,250 (in 2025).
Also, starting in 2026, the super catch-up limits will be indexed for inflation, meaning they could increase in future years.
In summary, you can contribute an extra $3,750 to your company-sponsored retirement plan this year if you are age 60-63. Every little bit helps!
Please comment or send an email if you have any questions.
Joe Baker, CFP®
Baker Asset Management, LLC
joebaker@bakerassemanagement.com
