As I understand, the 2025 “Super Catch-Up” is for workers age 60-63. I’m confused about the age requirement. For example, say someone turned 60 in October 2024, if they made the Super Catch-Up in 2025, would it count as their age 60 contribution, or age 61 contribution?
This is from IRS Notice 2024-80
“The limitation under section 414(v)(2)(E)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that applies for individuals who attain age 60, 61, 62, or 63 in 1 2025 is $11,250.”
You will either attain one of those ages in 2025 or not. If you will, then you can contribute an additional $11,250 to your 401(k). In your example above, a person turning age 60 in October 2024 will attain age 61 in 2025 and therefore be able to contribute an additional $11,250 to their 401(k) beyond the limit of $23,500 for non-catch up contributions.
This higher catch-up limit is for anyone who: “would attain age 60 but would not attain age 64 before the close of the taxable year”.
You “attain an age” on the day before your birthday, a relic of English common law.
Someone turning 60 in October 2024 would be eligible for three years: 2025 through 2027. But not 2028, as they’ll be 64 before the end of that year.
Because of the weirdness of the “attain an age” definition, someone born on January 1 of any year is effectively treated as if they were born in December of the previous year.
Permalink Submitted by William Marton on Wed, 2024-11-06 16:10
Here is the wording from IRS Notice 2024-80:
“The limitation under section 414(v)(2)(E)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that applies for individuals who attain age 60, 61, 62, or 63 in 2025 is $11,250.”
You will either attain one of those ages in 2025 or not. If you will, then you can contribute an additional $11,250 to your 401(k). A straightforward reading of the above in the context of your example is that a person turning age 60 in October 2024 will attain age 61 in 2025 and be able to contribute $11,250 in additional contributions beyond the $23,500 non-catch up contribution limit.