Starting in 2025, Secure Act 2.0 (Section 603) introduces a new, higher “super” catch-up contribution for retirement plan participants who turn age 60, 61, 62, or 63 by the end of the calendar year. This enhancement allows eligible individuals in 401(k), 403(b), governmental 457(b), and SIMPLE IRA plans to contribute more than the standard “age 50” catch-up limit. For 401(k), 403(b), and 457(b) plans, the 2025 super catch-up limit is $11,250 (150% of the $7,500 age 50 catch-up). For SIMPLE IRAs, the limit is $5,250 (150% of the $3,500 age 50 catch-up). These figures will be indexed for inflation beginning in 2026. Participants become eligible in the year they attain age 60, even if their birthday is late in the year. Once a participant reaches age 64, the enhanced limit no longer applies, and they revert to the standard age 50 catch-up contribution limits.
Employers and plan administrators must now track more age categories, increasing administrative complexity. Additionally, not all retirement plans offer catch-up contributions, so the super catch-up is only available if the plan already allows age 50 catch-ups. Super catch-up aims to help older workers boost retirement savings but also imposes more tracking responsibilities on plan sponsors starting with taxable years after December 31, 2024.