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Significant changes to 401(k) plans are coming in 2026, and if you make age 50+ catch-up contributions, you may need to be prepared. ... Catch-up contributions allow older employees to contribute more to their retirement plans beyond the standard IRS contribution limits ($23,500 in 2025). ... 60 – 63: $11,250 (SECURE 2.0 increased limit) ...

New SECURE 2.0 Super 401(k) Catch-Up Contribution for Ages 60-63. ... enhances catch-up contributions for certain older adults. If you’re 60, 61, 62, or 63 in 2025, you may be able to leverage ...

Starter 401(k)s: The elective deferral limit remains at $6,000, with a permissible catch-up amount of $1,000 for those 50 and older by the end of 2025. Compensation taken into account in figuring contributions and benefits: the limit is $345,000 (up from $345,000 in 2024). Auto enrollment for 401(k).

The SECURE 2.0 updates to 401(k) catch-up contributions are straightforward but will require some planning to implement properly. ... Individuals must be at least 50 years old by the end of the calendar year. Individuals are deemed to be age 50 on the January 1 of the calendar year in which they turn 50. For non-calendar plans, an individual ...

And for those age 60 to 63, that catch-up contribution jumps from $7,500 to $11,250. Starting in 2026, though, savers over the age of 50 will be divided into two groups based on annual income: Those making $145,000 or less in the prior year can continue making catch-up contributions to their regular pre-tax 401(k)s.

On January 10, 2025, the Treasury Department and the IRS issued proposed regulations providing guidance on the 401(k) catch-up contributions updated by SECURE 2.0. Significant changes include increased catch-up limits for those aged 60 to 63 and mandatory Roth contributions for high earners making more than $145,000.

Major Retirement Plan Changes to Become Effective in 2025 and 2026 February 19, 2025; NH Interest and Dividends Tax ... does not require) retirement plans to allow employees in 401(k), 403(b) and governmental 457(b) plans who are age 50 or older to make additional “catch up” contributions ($7,500 in 2025) that are in addition to regular ...

Currently, individuals who are 50 and older can make additional contributions—known as catch-up contributions—to their 401(k) plans. As of today, this amount is $7,500 per year. Those who are 60-63 get an extra boost with an additional $3,750, bringing the total extra contribution to $11,250.

Participants who are aged 50 and older can elect to contribute an additional amount to their retirement account, known as a catch-up contribution. Starting in 2025, SECURE 2.0 raised the catch-up contribution amount (called a super catch-up) for participants ages 60 to 63. Regular and super catch-up contributions are typically made on a pretax ...

For example, let’s say the “standard” age 50+ catch-up contribution for 401(k)s in 2025 is $8,000. Because 150% of $8,000 is $12,000, and that is greater than $10,000, you would be able to make a catch-up contribution of up to $12,000 if you were between age 60 and 63. 2026 Catch-up Contribution Change: The Roth Requirement

Those changes include, but aren’t limited to, a new RMD age and increased access to 401(k) plans for part-time workers. And there’s more. Starting in 2025, SECURE 2.0 enhances catch-up contributions for certain older adults. If you’re 60, 61, 62, or 63 in 2025, you may be able to leverage this provision to increase your savings for ...

New higher limits for savers between the ages of 60-63. Beginning in 2025, there are even more savings opportunities for workers who are between the ages of 60 and 63. ... In 2025, you can opt to make your catch-up 401(k) contributions into a traditional or a Roth account. ... And beginning in 2026, higher-income savers will be required to save ...

However, beginning in 2026, older workers earning over $145,000 annually will no longer be eligible to make catch-up contributions to a traditional 401(k) plan. Reduced Tax Savings and Take-Home Pay The shift towards “Rothification” of catch-up contributions means that older, high-earning workers will experience diminished tax savings and ...

Our Employee Benefits & Executive Compensation Group discusses what plan sponsors and fiduciaries need to know about the Internal Revenue Service’s proposed changes for employees 50 or older who make additional elective deferrals, known as “catch-up” contributions, to 401(k) retirement plans.

Learn how the new catch-up contribution rule for ages 60-63 in 2025 can help you maximize your retirement savings. Discover updated limits, tax benefits, and key strategies to boost your financial future. ... anyone 50 or older can contribute more to plans like 401(k)s or 403(b)s. ... Beginning in 2026, if you earn over $145,000 (adjusted for ...

2025: Persons aged 60, 61, 62 and 63. ... 2026: High Wage Earners if Age 50 or Older. Effective 2026, high wage earners will be required to use the Roth option for any 401(k) catch-up contributions. This applies to those aged 50 and older. Mandatory Roth usage for catch-up contributions will apply if wages from the plan sponsor in the prior ...

Big changes are coming for 401(k) retirement plan contributions in 2025 and 2026. These updates, straight from the SECURE Act 2.0, offer new options to help certain participants save more. Here’s what’s new:Super Catch-Up: Starting on January 1, 2025, participants who are age 60, 61, 62, and -63 can save even more for retirement. • What are catch up contributions? Employers have the ...

As of January 1, 2025, new 401(k) and 403(b) plans must include an automatic contribution and automatic escalation provisions. ... It requires that participants at least 50 years old whose prior-year Social Security wages exceeding $145,000 from an employer sponsoring the plan make catch-up contributions to a Roth account, rather than a pre-tax ...

Catch-up contributions for participants aged 50 and older. In addition to the regular catch-up contributions, SECURE 2.0 permits plans to offer higher catch-up limits for participants aged 60, 61, 62, or 63. The compensation limit used in the pension plan’s benefit and contribution formula(s).