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SECURE 2.0 requires higher earners to put their catch-up retirement savings in a Roth 401(k). ... known as a catch-up contribution. For 2025, the catch-up contribution is an extra $7,500 on top of the $23,500 limit for everyone else, for a total limit of $31,000. ... distribution options, legal and creditor protections, the availability of loan ...

Increased Catch-Up Contributions for Ages 60-63. Section 109 of SECURE 2.0 increases the catch-up limit for individuals aged 60-63 to the greater of $10,000 or 150% of the regular catch-up limit ($11,250 for 2025). Key details include: Age Range: The enhanced limit applies from the year an individual turns 60 until the year they turn 64.

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.

Effective in 2025, new provisions of the SECURE 2.0 Act will take effect regarding retirement plan provisions, including automatic enrollment in 401(k) plans, catch-up contributions for individuals aged 50 and older and coverage for long-term, part-time employees. ... Below is a comparison for 401(k) catch-up contribution limits by age: Age ...

On January 10, 2025, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued proposed regulations regarding the provisions of the SECURE 2.0 Act of 2022 (“SECURE 2.0”) that relate to catch-up contributions. The proposed regulations provide helpful and eagerly awaited guidance on a number of issues we have been working with clients to address but ...

If you earn more than $145,000 annually (indexed for inflation), your catch-up contributions to 401(k), 403(b), or 457 plans will now go directly to Roth, rather than pre-tax. The IRS just released guidance in January 2025 regarding how the new mandatory Roth catch-up provisions will work for high-income earners.

Discover the key 401(k) catch-up contribution changes coming in 2025 under the SECURE 2.0 Act. Learn how new age-based limits can help you boost your retirement savings. ... With the introduction of the super-catch-up provision in 2025, you can contribute more to your 401(k) plans if you are aged 60 to 63. However, there is still some debate on ...

On January 10, 2025, the U.S. Department of the Treasury and the Internal Revenue Service released proposed regulations to clarify and implement provisions from the SECURE 2.0 Act of 2022 concerning catch-up contributions in retirement plans.. While the proposed regulations provide much needed guidance on numerous issues affecting employer sponsored retirement plans, it also highlights the ...

The 2025 changes to retirement plan contribution limits, including the new $23,500 base limit and enhanced catch-up provisions, represent significant opportunities for retirement savers across all age groups. These increased limits and enhanced catch-up provisions offer valuable tools for strengthening retirement security.

Effective January 1, 2025, plan sponsors can opt to add a plan provision to allow participants who are between the ages of 60 and 63 at the end of 2025 (and subsequent years) to contribute an additional catch-up contribution…a super catch-up. For 401(k) and 403(b) plans, the super catch-up contribution is 150% of the regular catch-up ...

The IRS on Friday issued proposed regulations (REG-101268-24) on catch-up contributions under a 401(k) or similar retirement plan that generally are allowed for workers who are at least 50 years old.The proposed regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of certain retirement plans.

Get ready! Several new 401(k) provisions from the SECURE 2.0 Act kick in on January 1, 2025. One that we’ve already written about is the ability of employees to make extra catch-up contributions in a year they turn age 60, 61, 62 or 63 by the end of the year. (This “super catch-up” also applies to SIMPLE IRA participants.) Here are two others:

On January 10, 2025, the U.S. Department of the Treasury (Treasury) and Internal Revenue Service (IRS) issued proposed regulations that significantly impact defined contribution (DC) plans that permit catch-up contributions, reflecting the changes under sections 109 and 603 of the SECURE 2.0 Act of 2022 (SECURE 2.0). This Benefits Alert covers the key provisions impacting employer-sponsored ...

Besides 401(k)s, the new SECURE 2.0 rule also covers part-timers under ERISA-covered 403(b) plans, starting January 1, 2025. While this provision applies to elective deferrals only (not employer contributions), it marks a significant step in expanding retirement plan access to part-time workers. A Few Key Reminders. Catch-Up Contributions and ...

Key Provisions Available for Implementation in 2025: Increased Catch-Up Contribution Limits for Ages 60-63: This provision from SECURE 2.0 allows participants aged 60-63 to make larger catch-up contributions to their 401(k) plans starting in 2025. The limit increases to the greater of $10,000 or 150% of the standard catch-up contribution limit.

The Secure 2.0 Act introduced additional changes to retirement savings, in particular, the “super-catch-up” contribution provision. Effective January 1, 2025, this provision makes it possible to contribute more toward your retirement in the years that you are age 60-63.

2025 401(k) limits unveiled: Standard limit rises to $23,500, plus special $11,250 catch-up for ages 60-63. ... particularly those aged 60-63 who can take advantage of the new supersize catch-up provisions. While these increased limits are valuable tools for retirement planning, success ultimately depends on consistent saving, strategic ...

Attorney A is a catch-up-eligible counsel in a law firm in 2025 and receives FICA wages for that year. Attorney A’s Form W-2 for 2025 shows FICA wages in Box 3 exceeding $145,000 (as indexed).

The standard 401(k) limit for 2025 is $23,500, with a regular catch-up for those 50 and older of $7,500, meaning the "super catch-up" represents an additional $3,750 for qualifying participants. Once a participant turns 64, they revert to the age 50 and older (or +) catch-up contribution limit in effect for that year.