SECURE 2.0 and catch-up contribution for participants age 60, 61, 62 and 63

Submitted by Robert Wright on Sat, 2024-11-02 11:11

According to the IRS, SECURE 2.0 increases the catch-up contribution for plan participants age 60, 61, 62 and 63 to $11,250 from $7,500.

source: https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000#:~:text=Highlights%20of%20changes%20for%202025,to%20an%20IRA%20remains%20%247%2C000.

 

What about participants age 64+?

Is the additional catch-up of $11,250 only for people age 60, 61,62,ad 63?

i.e. is a 64 year old (or 65, or 66, 67 …..) participant only allowed a catch-up contribution of $7,500?

Thank you in advance for your help.



Submitted by Alan - IRA critic on Sun, 2024-11-03 18:48

The additional match disappears after age 63, and only the basic catch up is allowed.

Submitted by Robert Wright on Mon, 2024-11-04 08:02

Thanks Alan.

Submitted by fairira on Mon, 2024-11-04 19:24

Re the additional catch-up of $11,250. for 401(k) plan participants age 60, 61, 62 and 63:

•   1. Is this $11,250. catch-up amount also available in and after 2025 for someone making a “backdoor” Roth IRA contribution?

•   2. If so, could someone who will be 63 in June 2025 contribute $11,250. in July 2025 and contribute again in January 2026 or would he be limited to a single contribution for each age?

Submitted by fairira on Mon, 2024-11-04 19:35

Re the additional catch-up of $11,250. for 401(k) plan participants age 60, 61, 62 and 63:

If the $11,250. catch-up amount is available in and after 2025 for someone making a “backdoor” Roth IRA contribution, could someone who will be 63 in June 2025 contribute $11,250. in January 2025 at age 62 and contribute again in July 2025 or would he have to wait till 2026 to make his age 63 contribution?

Submitted by Alan - IRA critic on Tue, 2024-11-05 10:09

Yes, conversions do not affect qualified plan contributions including catch up contributions. IRA catchup contributions are not eligible for the additional catch up contributions.

If someone with an active 401k made the additional catch up contribution in 2025 at age 63, that would be the last year because those over 63 are not eligible. Therefore, the additional catch up is only available for those in qualified plans and only for the 4 years at ages 60-63.

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