2025’s Super Catch-Up 401(k) Contribution: What You Need to Know
If you’re between the ages of 60 and 63, 2025 marks a golden opportunity to supercharge your retirement savings.
Thanks to the SECURE 2.0 Act, the IRS is rolling out a special “super catch-up” 401(k) contribution limit, allowing eligible individuals to save significantly more than ever before.
This new contribution limit is designed to give those nearing retirement an extra boost.
Whether you’ve been consistently saving or need to make up for lost time, this enhanced contribution option could be the key to a more secure retirement.
Keep reading to learn how much you can contribute, why this change matters, and who should take full advantage of this opportunity.
401(k) Contribution Limits for 2025
The IRS announced an increase to 401(k) plan contribution limits for the upcoming year.
The 401(k) contribution limit has increased to $23,500 in 2025, up from $23,000 in 2024.
For workers 50 and above, there is no increase in catch-up contribution limits. It remains $7,500 in 2025 for a total contribution limit of $31,000.
However, there is a group of people who can take advantage of the 2025 super catch-up 401(k) contribution limit.
How Much Is the Super Catch-Up 401(k) Contribution?
The super catch-up 401(k) contribution limit is specifically for those aged 60-63 starting in 2025.
Those lucky individuals aged 60 to 63 may contribute an additional $11,250 instead of the $7,500 catch-up contribution those 50-59 and 64 and older may contribute.
Those in this age group can contribute an additional $3,750 to their 401(k) plans.
This means that rather than having a contribution limit of $23,500, those in this group can potentially contribute up to $34,750 in total to their 401(k) plan.
The super catch-up 401(k) contribution limit is a fantastic opportunity to boost retirement savings.
Why Is Super Catch-Up 401(k) Contribution So Important?
The cost of retirement continues to rise.
According to the Northwestern Mutual 2024 Planning & Progress Study, “American adults say on average they now need $1.46 million to retire. That’s 15% higher than a year earlier and a 50% increase since 2020.”¹
Despite this, many Americans are not saving enough to retire comfortably.
The 2023 Protected Retirement Income and Planning (PRIP) study from the Alliance for Lifetime Income found:
- 51% of consumers between 45 and 75 feel they do not have enough retirement savings to last their lifetime.
- 32% are not confident they will have enough money in retirement to cover basic monthly expenses.²
The super catch-up 401(k) contribution limit for those 60-63 provides a unique opportunity for those behind to boost retirement savings.
[Related Read: 401(k) Balance by Age: How Do You Measure Up?]
Who Should Take Advantage of the Super Catch-Up 401(k) Contribution?
If you’re between the ages of 60 and 63 starting in 2025, the super catch-up 401(k) contribution is an opportunity to significantly boost your retirement savings.
Here’s why and how to make the most of it:
- Catch Up on Lost Time: If life circumstances or financial priorities earlier in your career left your retirement savings lagging, now is your chance to close the gap. This contribution option is tailored for individuals who may have fallen behind and need to accelerate their savings.
- Leverage Employer Matching: If your employer offers 401(k) contribution matching, every extra dollar you save could mean additional funds from your employer. Make sure you’re contributing enough to take full advantage of this benefit – it’s essentially free money toward your future.
- Prioritize Your Budget: Retirement savings should be a top priority, especially if you’re eligible for the super catch-up limit. Consider reducing discretionary expenses, selling unused assets, or using bonus income to maximize your contributions.
- Consult a Financial Advisor: If you’re unsure how much to contribute or how this fits into your broader financial plan, now is the time to reach out to a professional. They can help you determine how much you need to save and create a roadmap for meeting your retirement goals.
- Understand the Impact: Even small increases in your contributions can make a significant difference over time. By taking full advantage of the super catch-up limit, you may be setting yourself up for a more comfortable and secure retirement.
Have questions or concerns about your 401(k) performance? Book a complimentary 15-minute 401(k) Strategy Session with one of our advisors.
Sources:
- https://www.forbes.com/sites/bobcarlson/2024/05/24/how-much-money-do-you-really-need-to-retire-comfortably/
- https://www.foxbusiness.com/markets/inside-americas-retirement-income-crisis
