The Super Catch Up Is Coming

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The SUPER Catch Up is Coming 

Angelica Sudore

The SECURE Act 2.0, which was signed into law in 2022, has ushered in many changes to rules and regulations surrounding retirement savings. Many of these changes aim to help individuals save for their retirement. One such change will go into effect in 2025: the “super catch-up”.

 

Who does this change impact?

  • This change will impact participants in 401(k) or other employer sponsored retirement plans who are ages 60 to 63. Meaning, if in 2025 you turn 60, 61, 62, or 63 you can take advantage of this special catch-up contribution.1 Even if you do not turn 60 until October of 2025, you are still covered under this new ruling to be considered in this “higher catch up” category. A nuance to this is if you turn 64 during the year you will revert to the ‘normal’ 50+ category. The important key question to ask yourself is “how old will I be on December 31st, 2025?”

What does this mean?

  • This means that you are now able to contribute a higher catch-up contribution amount. This applies to both pre-tax contributions as well as Roth contributions in an employer sponsored account.2 The catch-up limit has now been raised to $11,250 instead of the $7,500, which is still available for the 50+ catch up age category. Meaning if you qualify for the higher catch-up category you can save up to $34,750 in just one year! For reference, the regular deferral limit for 2025 is $23,500.3 

When does it go into effect?

  • This change goes into effect January 1st, 2025 – all thanks to the SECURE 2.0 Act. 

How can I make this change?

  • You can make this change by contacting your plan sponsor. Please note that your employer will need to offer the super contribution for you to take advantage of the option.4 As of now, it is optional for the employer to offer this perk. With the end of the year coming fast, I would suggest making the call today to see if your plan qualifies. 

 

With so many changing rules and regulations it can be hard to keep up – so please if you have any further questions do not hesitate to reach out to your dedicated team member here at Rise! We would be more than happy to evaluate and have further conversations on how this can affect your financial plan and future. 


  1. Kiplinger. New Rules for Retirement Savings Taking Effect in 2025. (Nov 13 2024). https://www.Kiplinger.com 
  2. Kiplinger. New SECURE 2.0 Super 401(k) Catch-up Contribution for Ages 60-63. (Nov 2024) https://www.kiplinger.com/taxes/super-catch-up-contribution-for-age-60-63 
  3. IRS. 401(k) Limit Increases to $23,500 for 2025, IRA limit remains $7,000. (Nov 1 2024) https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000 
  4. USA Today. A New Supersize Limit for Some 401(k) Contributions Hits in 2025:What You Need to Know. (Nov 12 2024). https://www.usatoday.com/story/money/2024/11/12/401k-2025-catch-up-limit-contribution/76206689007/ 

 

Advisory services offered through Rise Advisors, LLC (“Rise”), a Registered Investment Adviser. This report is being generated as a courtesy and is for informational purposes only.

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