Thanks to the SECURE 2.0 Act, individuals nearing retirement now have an even greater opportunity to boost their retirement savings. Starting in 2025, workers aged 60 to 63 can contribute up to $34,750 annually to their 401(k) plans. This elevated limit reflects a new tier of catch-up contributions designed to help late-career savers maximize their nest egg.
Here’s how the total breaks down:
Standard annual contribution: $23,500
Enhanced catch-up contribution (ages 60–63): $11,250
This enhanced catch-up replaces the standard $7,500 catch-up contribution available to individuals aged 50 and older. The result is an additional $3,750 in contribution room exclusively for the 60–63 age group.
This provision empowers older workers—whether catching up after years of lower savings or aiming to fortify their retirement plans—to take full advantage of their peak earning years. It’s a strategic way to make meaningful progress toward long-term financial security just before stepping into retirement.
