Good news to kick off 2025!  Provisions allow for increased contributions to retirement savings plans (403(b), 457(b), and 401(k) plans) for individuals 50 and older.

 

If you are age 50 or over by the end of calendar year 2025, you may make additional annual catch-up contributions to your employee retirement account of $7,500, as long as you are still working. 

 

Additionally, there is an added late-career savings boost specifically for those age 60-63. This amount greatly increases contributions beyond the “regular” catch-up contribution noted above. Individuals ages 60 through 63 years old will be able to make catch-up contributions up to $11,250. This applies to 401(k), 403(b), and governmental 457(b) plans that currently offer catch-up contributions. 

 

As noted above, participation in Secure Act 2.0 additional contributions is optional for employers. Please contact your plan administrator for details on their participation if you are interested in taking advantage of this late savings boost.

 

Please be aware, if you turn 64 during 2025, you revert to the standard age 50+ catch-up contribution limit and are not eligible for the Secure Act 2.0 additional contribution.

 

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