As you approach the ages of 60 to 63 in 2025, we want to share an important update regarding this milestone. One of the provisions in the Secure Act 2.0 is an enhanced catch-up contribution (Super catch-up) for individuals participating in their employer’s retirement plan.
Starting in 2025, if you are aged 60,61,62, or 63, you will have a higher catch-up contribution limit compared to individuals aged 50 and older (50-59 or 64+).
The Super catch-up contribution limit for 2025 is $11,250 (compared to the traditional catch-up provision of $7,500).
Please note that this new catch-up contribution applies only to individuals participating in their employer’s retirement plan and does not include Individual Retirement Accounts (IRAs).
If you choose to increase your contributions, please contact your retirement plan provider or your HR department.
If you have any questions regarding this update or any broader financial planning issues, please reach out to your WestHill Financial Advisor. We would be more than happy to discuss this further.