Employers offering 401(k), 403(b), or 457(b) plans can provide participants aged 50 or older the option to make catch-up contributions up to $7,500. However, if offered, this option must be available to all eligible participants.
Starting in 2025, the SECURE 2.0 Act raises catch-up contribution limits for participants aged 60 to 63 by allowing individuals in this category to contribute more than the standard limit. In 2025, the limit for those in this age group will be up to $10,000 or 150% of the standard catch-up contribution at the time, whichever amount is greater.
Next Steps
Employers should communicate their plan contribution limits for next year to employees; and while not all plan participants will be able to fund their retirement accounts up to the maximum, employers should encourage those who can defer extra dollars for retirement savings to do so.
