Catching Up on Retirement Savings: The New Super 401(k) Catch-Up Limit

With National Financial Awareness Day approaching, plan sponsors often seek ways to highlight valuable plan features to their participants. The new Super Catch-Up provisions present an excellent opportunity to engage your 60-to-63-year-old employees in maximizing their retirement savings.

As part of the SECURE 2.0 Act of 2022, Congress added yet another option for individuals to save higher amounts for their own retirement. Starting in 2025, individuals between the ages of 60 and 63 can boost their retirement savings beyond the normal dollar limits.

401(k), 403(b), governmental 457(b), and SIMPLE-IRAs all permit employees to make voluntary payroll deductions for retirement. For purposes of this article, we'll use the limits for 401(k), 403(b), and governmental 457(b) plans.

The normal dollar limit is $23,500 for 2025.

Individuals over age 50 can contribute an additional $7,500 as a Catch-Up contribution in 2025. Catch-up contributions are intended to allow older individuals to increase their retirement savings in later years when most people generally have more income and fewer expenses than in the earlier part of their working career.

The new Super Catch-Up contribution is for individuals between the ages of 60 and 63 (4 years) to be able to contribute up to $11,250 as a catch-up contribution instead of $7,500.

Important Considerations:

The new Super Catch-Up contribution limit is an optional feature, so check with your plan administrator to see if your plan allows these new limits.

Each person will need to notify their employer if they want to make these additional contributions, so that your payroll can be adjusted to include the additional deductions

Here is an overview of the limits for 2025:

Contribution by Age for 401(k), 403(b) and 457(b) Plans	2025 Dollar Limit
Normal Dollar Limit (under age 50)	$23,500
Catch Up Limit (Age 50–59)	$7,500
Catch Up Limit (Age 60–63)	$11,250
Catch Up Limit (Age 64 and Older)	$7,500

The dollar limits outlined above are for 2025 and may change in future years based on the IRS's Cost of Living Adjustments (COLA) report.

If you have a SIMPLE-IRA, check the IRS's website for information about the limits in a SIMPLE-IRA Plan.

National Financial Awareness Day provides an ideal opportunity to communicate these enhanced contribution limits to eligible participants. Ensure your plan has adopted the Super Catch-Up provision and that your payroll teams are prepared to implement these higher limits.

For more information about Super Catch-Up contributions, contact CRI TPA Services at info@CRITPA.com.