Most of us are familiar with 401(k) plans and Simple IRA plans and their benefits for reducing taxable income and saving for retirement. You may also be aware of Catch-up contributions and the ability to put additional monies into retirement when over age 50. But did you know that there is a Super Catch-up contribution beginning in 2025?
Background
Let’s back up and start at the beginning. Catch-up contributions were introduced in 2001 as part of the Economic Growth and Tax Relief Reconciliation Act, allowing individuals aged 50 and older to make additional contributions to their retirement accounts such as 401(k)s and IRAs.
The Internal Revenue Service has announced that the amount individuals can contribute to their 401(k) plans in 2025 has increased to $23,500, up from $23,000 from 2024. Contributions to Simple IRA plans have also increased in 2025 to $16,500, up from $16,000 from 2024. For 2025 the 401(k) Catch-up amount is $7,500 and the Simple IRA Catch-up amount is $3,500.
New for 2025: The Super Catch-Up
Starting in 2025, the Secure 2.0 Act allows eligible participants who are ages sixty to sixty-three to make “Super Catch-up contributions” of up to the greater of $10,000 or 150 percent of the regular Catch-up limit.
To be eligible for the Super Catch-up you must be:
- Ages 60, 61, 62 or 63 by the end of the calendar year
- Generally already contributed the maximum deferral amount
Once a participant turns age 64, they revert back to the age 50 catch-up contribution limit for that year.
The Internal Revenue Service has announced that the amounts of the 2025 Super Catch-up for 401(K) plans is $11,250 and the Super Catch-up for Simple IRA plans is $5,250.
Now let’s put this all together.
Retirement Plan | Participant Age in 2025 | 2025 Annual Salary Deferral Contribution Limit | 2025 Catch-Up Contribution | 2025 Total Annual Salary Deferral Contribution Limit |
|---|---|---|---|---|
401(k), 403(b), governmental 457(b) | Up to age 49 | $23,500 | N/A | N/A |
401(k), 403(b), governmental 457(b) | 50-59 years OR 64 & up | $23,500 | $7,500 | $31,000 |
401(k), 403(b), governmental 457(b) | 60-63 years | $23,500 | $11,250 | $34,750 |
Simple IRA | Up to age 49 | $16,500 | N/A | N/A |
Simple IRA | 50-59 years OR 64 & up | $16,500 | $3,500 | $20,000 |
Simple IRA | 60-63 | $16,500 | $5,250 | $21,750 |
For help maximizing your tax savings and retirement contributions, reach out to a Wegner CPAs tax advisor.
