The SECURE Act 2.0 is shaking things up for 401(k) catch-up contributions, offering new opportunities for older workers to supercharge their retirement savings.
If you're 50 or older, you can still make extra contributions—currently $7,500 in 2025—but the real game-changer arrives at ages 60-63. Starting in 2025, plan participants in this group can contribute the greater of $10,000 or 150% of the standard catch-up limit, allowing them to bulk up their retirement nest egg like never before.
There’s also a new rule for high earners that goes into effect January 2026 —if you made $145,000 or more in the previous year, your catch-up contributions must go into a Roth account, meaning after-tax contributions now pave the way for tax-free withdrawals in retirement. These updates are designed to help Americans build stronger financial futures, giving those nearing retirement a final boost toward financial security.
This summer, take the time to review your 401(k) plan documents and consider making amendments to align with the new Roth requirements. Many plan third-party administrators require several months' lead time to make the required changes so you'll want to start this process early --your future self with thank you! For a more information about SECURE 2.0 see Secure 2.0_Section by Section Summary 12-19-22 FINAL.pdf