Super Catch Up Contributions

Hi Friends, today we’re gonna talk about something called super catch-up limits.  Welcome to today’s A$AP Finance!

For 2025, Under a change made in SECURE 2.0, a higher catch-up contribution limit is available for employees aged 60, 61, 62 and 63 who participate in a 401(k) plan. For 2025, this higher catch-up contribution limit is $11,250 instead of the $7,500 standard catch up limit for this year.

So if you are turning 60,61,62 or 63 by the end of 2025 you can contribute an extra $11,250.  This is on top of the $23,500 standard annual deferral limit, for a total of $34,750.

Introducing these higher catch-up contribution limits for ages 60-63 under SECURE 2.0 is part of a broader effort to encourage more workers to save for retirement.

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

Thanks for watching and see you next month!