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Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans. For 2025, this higher catch-up contribution limit is $5,250. Details on these and other retirement-related cost-of-living adjustments for 2025 are in Notice 2024-80 PDF, available on IRS.gov.

The catch-up contribution limit for 401(k) participants is $7,500 for 2024 and 2025 on top of the annual $23,500 contribution limit. The IRS allows catch-up contributions for people who also ...

A catch-up contribution is an elective deferral made by a participant age 50 or older that exceeds a statutory limit, a plan-imposed limit, or the actual deferral percentage (ADP) test limit for highly compensated employees (HCEs). Catch-up contributions may be made to a 401(k) plan, a 403(b) plan, a governmental 457(b) plan, a SARSEP, a SIMPLE ...

Those making $145,000 or less in the prior year can continue making catch-up contributions to their regular pre-tax 401(k)s. Those making more than $145,000 in the prior year will have to put their catch-up dollars in a Roth 401(k)—which means those contributions will be after-tax, though their qualified withdrawals in retirement will be tax ...

So, each plan sponsor will decide whether to implement this feature in their retirement plans. This enhanced catch-up contribution limit is $10,000 or 150% of the standard age 50+ catch-up ...

Catch-up contributions allow older employees to contribute more to their retirement plans beyond the standard IRS contribution limits ($23,500 in 2025). Catch up contributions begin once an eligible participant contributes more than $23,500 (2025).

On January 10, 2025, the Internal Revenue Service (“IRS”) issued proposed regulations providing long-awaited guidance on the updates to 401(k) catch-up contributions introduced by the SECURE 2.0 Act of 2022 (SECURE 2.0).These updates affect individuals nearing retirement age and high earners.

401(k), 403(b), and 457 plans and the federal Thrift Savings Plan. For tax year 2024, the maximum contribution limit for these retirement plans is $23,000, with a $7,500 catch-up contribution allowed for those who are 50 and over.For tax year 2025, the contribution limit rises to $23,500, while the catch-up provision remains the same. 4 In other words, you could potentially contribute up to ...

Section 603 of SECURE 2.0, however, mandates that any catch-up contributions made by higher-income participants in 401(k), 403(b), or 457(b) retirement plans must be designated as after-tax Roth contributions.

2. Make the most of catch-up provisions. Once you reach age 50, catch-up provisions in the tax code allow you to increase your tax-advantaged savings in several types of retirement accounts. For a traditional or Roth IRA, the annual catch-up amount in 2024 and 2025 is $1,000, which boosts your total contribution potential to IRAs to $8,000.

The 2025 IRS limit for super catch-up contributions is $11,250, while the standard catch-up limit is $7,500. Mandatory Roth catch-up contributions for certain high earners. Section 603 of SECURE 2.0 requires that any catch-up contributions made by certain catch-up-eligible high earners must be made as Roth contributions.

Understanding Catch-Up Contributions . There are annual limits to how much you can contribute to your 401(k). In 2024, for people under 50 years old, this limit is $23,000, increasing to $23,500 ...

Catch-up Contribution Limits 2024 & 2025. The IRS reviews and adjusts contribution limits every year, primarily considering inflation. A prerequisite to catch-up contributions is reaching your plan's contribution limit. The contribution limits for 2024 and 2025 are shown in the following table: Catch-up Contribution Requirements

Catch-up contributions allow savers who are 50 and older make extra contributions to tax-advantaged retirement plans each year. These amounts adjust periodically. For 2024, an eligible saver can ...

The IRS sets up catch-up contribution limits, which vary based on your retirement arrangement. These amounts apply through the end of 2024. Keep in mind that these limits may change in 2025.

For example, a participant eligible for both the age 50 catch-up and $3,000 of the special 403(b) catch-up makes an additional $7,000 in catch-up contributions during 2020. $3,000 of the $7,000 is applied to the special 403(b) catch-up and the remaining $4,000 is applied to the age 50 catch-up. See Treas. Reg. 1.403(b)-4(c)(3)(iv). Audit tips

Once you turn 50, you become eligible to make catch-up contributions of up to $7,500 to your 401(k) plan, bringing the total to $31,000 in tax-deferred contributions.

The SECURE 2.0 Roth catch-up contribution rule won’t apply to taxpayers making $144,999 or less in a tax year. SECURE 2.0 Act Summary: New Retirement Plan Rules to Know Roth catch-up ...

Similarly, if employees aged 60–63 are allowed catch-up contributions up to $11,250, then other catch-up-eligible employees must be allowed catch-up contributions of up to $7,500. It also appears that if one plan allows super catch-up contributions, then all plans in the controlled group must offer super catch-up contributions.