The SECURE 2.0 Act Changes - Part II

Effective January 1, 2025, there are two different catch-up contribution limits based on the age you  attain that year. The catch-up contribution limit you are familiar with will apply to ages 50-59 and 64+. If you  attain the age of 60, 61, 62, or 63 during the year, then your catch-up contribution limit is much larger. The  goal is to give people who are approaching retirement age the opportunity to save more money.

The 2025 catch-up contribution limits for 401(k)/Roth deferrals are:

Age 50-59 and 64+: $7,500.00
Age 60-63: $11,250.00

The 2025 catch-up contribution limits for SIMPLE 401(k)/IRA deferrals are:

Age 50-59 and 64+: $3,500.00
Age 60-63: $5,250.00

There is currently another catch-up contribution change set to start in 2026: if your wages are $145,000 or  higher, then your catch-up contributions must be Roth contributions. This means your contributions won’t be  tax-deductible, but your withdrawals of these contributions in retirement will be tax-free.