Retirement Just Got a Boost: What You Should Know About the Super Catch-Up Provision

If you’re between the ages of 60 and 63 and still working, there’s a new opportunity to strengthen your retirement savings. Thanks to the SECURE Act 2.0, starting in 2025, you’ll be able to make larger catch-up contributions to your employer-sponsored retirement plan—up to 150% of the regular catch-up limit.

This provision is designed to help individuals in their early 60s make the most of their peak earning years and prepare for retirement more effectively. Whether you’re trying to make up for lost time or simply want to maximize your savings, this change could make a meaningful difference.

What’s Changing?

• Super Catch-Up Contributions: Beginning in 2025, individuals aged 60 to 63 can contribute up to 150% of the standard catch-up amount to 401(k), 403(b), and similar plans.
• Roth Requirement for High Earners: Originally set to begin in 2024, the rule requiring catch-up contributions to be made to Roth accounts for employees earning over $145,000 has been delayed until 2026. This means you have more time to plan for the tax implications of Roth contributions.

Why This Matters

• Higher savings potential: You can contribute more during the years when you’re likely earning the most.
• Tax planning opportunities: Roth contributions are made with after-tax dollars but grow tax-free, which can be beneficial in retirement.
• Flexibility: The delay in the Roth requirement gives you time to adjust your strategy and consult with your financial team.

What You Can Do Now

• Review your current retirement contributions and understand how close you are to the limits.
• Talk with your CPA and financial advisor to determine how the Super Catch-Up Provision fits into your overall retirement strategy.
• Plan ahead for 2025 and 2026 so you’re ready to take full advantage of the increased limits and understand the Roth implications.

Want to make sure you’re on track? Reach out to the team at Jones & Roth today. We’re here to help you navigate these changes and make informed decisions about your retirement savings.

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