May 4, 2025 | 3-4 Minute Read
Good news for retirement savers aged 60-63 years old, SECURE 2.0’s expanded catch-up contributions provision allows them to put extra money into their retirement plans, even beyond what the existing catch-up provision allows!
Catch-up contributions allow those who are closer to retirement to “catch-up” on retirement savings, as many do not save as much earlier in their careers. This new provision allows older employees to save even more.
While participants who will be age 50 on December 31, 2025, and over can defer $7,500 more than the regular $23,500 deferral limit, those who are 60, 61, 62, or 63 on December 31, 2025 will be able to defer an additional $11,250. irs.gov
When it Became Effective
This provision became available for participants on January 1, 2025. The expanded catch-up provision takes the standard catch-up limit of $7,500 (which is reviewed for changes in cost of living annually and routinely adjusted) and multiplies that limit by 150% ($11,250) for those age 60-63.
This new provision is available to 401(k), 403(b), and governmental 457 plans and must be elected by the plan to be available to participants. However, most pre-approved plans are already written to include this new provision, as they reference Code Section 414(v). Plan documents that do not already have this language will need a formal amendment which is due with other SECURE 2.0 amendments on December 31, 2026 for most plans (later for governmental plans).
How it Works
If elected in the plan’s document, participants of a 401(k), 403(b), or governmental 457(b) plan who are 60, 61, 62, or 63 on December 31, will be able to defer the expanded catch-up contribution amount (150% of that year’s catch-up limit). Once a participant turns 64, the catch-up contribution amount reverts to the standard limit. You can always find current catch-up, deferral, and other limits on our website’s Contribution Limit chart.
Advantages
One major aim of SECURE 2.0 is to improve Americans’ retirement readiness. Catch-up contributions allow those who are closer to retirement to “catch-up” on retirement saving, as many do not save as much earlier in their careers. This new provision allowing expanded catch-up contributions enables older employees to save even more.
Other Considerations
Another provision of SECURE 2.0 which starts in 2026 requires that certain higher-earning employees will only be allowed to make catch-up contributions on a Roth (after-tax) basis. Please see “SECURE 2.0: Roth Catch-Up Contribution Rules for High Earners Starting in 2026.”
Benefits² Administrators clients: If you have questions about expanded catch-up contributions in your plan, we encourage you to reach out to your dedicated Retirement Analyst. They can help you determine if your plan document will need to be amended to allow for additional catch-up contributions and/or to determine which of your participants are eligible to contribute these additional retirement contributions.
For non-clients or plan advisors seeking guidance: Feel free to contact Leslie Wood (lwood@benefits2llc.com) for additional information and support. Leslie can provide an overview of the SECURE 2.0 expanded catch-up contributions, if a plan document needs amended for the provision, or additional strategies for increased retirement savings.
Our Benefits² Administrators team is here to help you navigate these new retirement plan rules and optimize your plan’s design for both efficiency and participant success.
JP Perryman, QKA
Jeremiah “JP” Perryman, QKA is the Director of Retirement Plan Compliance at Benefits² Administrators. He has more than 15 years of experience working with qualified retirement plans.