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SECURE 2.0 requires higher earners to put their catch-up retirement savings in a Roth 401(k). Skip to content. Find a Branch; Contact Us. Call. ... 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. And for those age 60 to 63, that ...

IR-2023-155, Aug. 25, 2023. WASHINGTON — Today, the Internal Revenue Service announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher‑income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions.

IR-2025-07, Jan. 10, 2025 — The Department of the Treasury and the Internal Revenue Service issued proposed regulations today addressing several SECURE 2.0 Act provisions relating to catch-up contributions, which are additional contributions under a 401(k) or similar workplace retirement plan that generally are allowed with respect to employees who are age 50 or older.

Making catch-up contributions on an after-tax Roth basis means paying taxes on your retirement savings during years when you sometimes earn more. Super catch-up 2025 limits: Bottom line

Catch-up contributions increased in 2025 for 401(k), 403(b), governmental plans, and IRA account holders for employees between the ages of 60 and 63. ... Individuals earning $145,000 or less, adjusted for inflation going forward, will be exempt from the Roth requirement. IRAs have a $1,000 catch-up contribution limit for people age 50 and over ...

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.

The Roth 401(k) contribution limit for 2025 is $23,500 for employee contributions and $70,000 for employee and employer contributions combined. There's also a $7,500 catch-up contribution for those age 50 to 59 and 64 or older, which raises the employee limit to $31,000 for those eligible.

Key changes to Roth 401(k) account rules may affect your tax planning and retirement savings. ... If you are 50-59 and 64 or older, the catch-up contribution limit for 2025 is an additional $7,500 ...

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. If you participate in a 401(k) , Roth 401(k) , 403(b) , or similar workplace retirement savings plan, the catch-up opportunity is even greater: up to $7,500 a year.

IRS Issues Guidance on Mandatory 401(k) Roth Catch-up Starting in 2026 Starting January 1, 2026, high-income earners will face a significant shift in retirement savings rules due to the new Mandatory Roth Catch-Up Contribution requirement. ... Tim automatically gets a pass for 2025 for the mandatory Roth catch-up, because he did not have wages ...

For 2025, the max catch-up contribution is $11,250. In 2025, the total limit for 401(k) contributions for those aged 60 to 63 is $34,750. That number includes a $23,500 contribution limit and a ...

1 The universal availability requirement for catch-up contributions applies to all participants participating in all 401(k) and non-ERISA 403(b) plans of the same employer (on a controlled group basis).. 2 SECURE 2.0 states that the statutory effective is taxable years beginning after December 31, 2023 (i.e., beginning January 1, 2024) for the new mandatory Roth catch-up contribution requirements.

Contribution limits for a Roth 401(k) are the same as for a traditional 401(k). You can contribute up to $23,000 in 2024 plus a catch-up contribution of $7,500 if you're age 50 or older.

For 2025, the catch-up limit for this group is $11,250 instead of $7,500. ... Roth contributions or whether subsequent contributions will need to be on a Roth basis in order to satisfy the Roth ...

The Roth catch-up requirement was originally scheduled to become effective for taxable years beginning after December 31, 2023, but it was delayed until taxable years beginning after December 31, 2025. The regulations will permit a 401(k) or 403(b) plan to provide that a participant who is subject to the mandatory Roth catch-up requirement is ...

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.

2025 401(k) limits unveiled: Standard limit rises to $23,500, plus special $11,250 catch-up for ages 60-63. ... The increased limits also apply to Roth 401(k) contributions, allowing savers to put away more after-tax dollars that can grow tax-free. ... The limit on annual contributions to an IRA will remain at $7,000 in 2025. The IRA catch-up ...

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. Under SECURE Act 2.0, employees earning above a certain threshold will be required to make catch-up contributions as Roth rather than pre-tax.

Defined Contribution Plans 2025 2024 Change; Maximum employee elective deferral (age 49 or younger) (1) $23,500: $23,000 +$500: Employee catch-up contribution (age 50 or older by year-end) (2)