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.
| Participant Age in 2025 | 2025 Standard Annual Deferral Limit | Catch-up Contribution for 2025 | Total 2025 Annual Contribution Limit |
| 50-59 OR 64 or older | $23,500 | $7,500 | $31,000 |
| 60-63 | $23,500 | $11,250 | $34,750 |
Provisions and Deadlines
Mandatory Automatic Enrollment:
Employers establishing new 401(k) or 403(b) plans after December 29, 2022, must automatically enroll eligible employees at a starting rate of at least 3% (increasing annually until 10%).
Increased Catch-Up Contributions:
Individuals aged 60-63 can make catch-up contributions up to $11,250 in 2025, an increase from the standard $7,500.
Expanded Eligibility for Long-Term Part-Time Employees:
Employees working at least 500 hours for two consecutive years are eligible to participate in retirement plans.
Plan Amendment Deadlines:
Employers must comply with SECURE 2.0 changes as they take effect in 2025 but have until December 31, 2026, to formally adopt changes by plan amendment.
Retroactive First Year Deferrals:
Sole proprietors and LLCs taxed as sole proprietorships can make 401(k) deferrals retroactively for the 2024 year in 2025.
Roth Catch-Up Contributions:
Beginning in 2026, individuals earning more than $145,000 in FICA wages in the prior year will be required to make catch-up contributions to a Roth account.