Retirement savings rules are changing, and 2025 brings some of the most meaningful updates we’ve seen in years. The IRS has released new contribution limits, and several key provisions of the SECURE 2.0 Act are taking effect, especially for people in their 50s and early 60s. These updates create new opportunities for clients to boost their retirement savings, reduce taxes, and make the most of the years leading up to retirement. Below is a clear overview of the new 2025 catch-up contribution rules and what they may mean for your financial plan.
What are “catch-up” contributions?
Catch-up contributions are additional amounts professionals age 50 or older are allowed to contribute to certain retirement accounts on top of the standard annual limit. The goal is to help people “catch up” as they get closer to retirement.
For 2025, those rules are still in place and have been expanded for people in their early 60s.
2025 Catch-up Limits at a Glance
The IRS releases cost-of-living adjustments each year for retirement plans. Here are the key numbers for 2025:
Workplace plans: 401(k), 403(b), most 457(b), Thrift Savings Plan
- Regular employee deferral limit (all ages):
Up to 23,500 dollars in 2025. - Standard catch-up for age 50 and older:
An additional $7,500, for a total of $31,000 of salary deferrals for most plans.
So, a worker who is 55 in 2025 can contribute up to $31,000 of their own pay to a 401(k), 403(b), 457(b), or similar plan, if their plan allows it.
SIMPLE IRA and SIMPLE 401(k) plans
For businesses that use SIMPLE plans, the limits are lower, but the same idea applies.
- Regular SIMPLE deferral limit (all ages):
Up to $16,500 in 2025. - Standard catch-up for age 50 and older:
An additional $3,500, for a total of $20,000.
IRAs (Traditional and Roth)
For traditional and Roth individual retirement accounts, the catch-up rules are unchanged for 2025.
- Regular IRA contribution limit:
Up to $7,000 in 2025. - Catch up for those age 50 and older:
An additional $1,000, for a total of $8,000, split however you choose between Traditional and Roth IRAs (subject to eligibility rules).
New for 2025: “Super” catch-up for ages 60 to 63
One of the most important SECURE 2.0 changes kicks in for the 2025 tax year. If you are in your early 60s and still working, you may be able to contribute even more than the standard catch-up.
For 401(k), 403(b), most 457(b), and Thrift plans
Starting in 2025, workers who are age 60, 61, 62, or 63 by the end of the year can make a larger catch-up contribution:
- Standard catch-up (50 and older): $7,500
- Enhanced “age 60–63” catch-up: $11,250 in 2025
That means someone between 60 and 63 can contribute up to $34,750 of their own pay into a qualifying workplace plan in 2025 if their plan adopts the new higher limit.
For SIMPLE plans
SIMPLE plans also get a special increase for workers in this age band:
- Standard SIMPLE catch-up (50 and older): $3,500
- Enhanced “age 60–63” SIMPLE catch-up: $5,250 in 2025
Not every employer plan is required to offer catch-up contributions or the enhanced 60–63 limit, so what each individual can do in practice will depend on their plan’s rules.
Looking ahead: Roth catch-up requirement for higher earners
While the bigger dollar amounts take effect in 2025, another important rule is coming the very next year.
Under SECURE 2.0 and recent IRS final regulations, those age 50 and older who had more than $145,000 of Social Security wages with that employer in the prior year will be required to make their workplace catch-up contributions as Roth (after tax) starting in 2026.
That means:
- 2025 is the last full year when higher earners can generally choose between pre-tax and Roth catch-up contributions in 401(k), 403(b), and governmental 457(b) plans, assuming the plan offers both.
- Beginning in 2026, if their plan does not offer a Roth option, affected employees may not be able to make catch-up contributions at all until the plan is updated.
This upcoming shift makes it especially important to revisit contribution strategies now, while there is still flexibility.
What this means for you
For those in their 50s and early 60s, 2025 is a key planning year:
- Those age 50 and older can increase their savings using the standard catch-up.
- Those age 60 to 63 have a short window to take advantage of the new, higher “super” catch-up limits in their workplace plan or SIMPLE plan, if available.
- Higher-earning clients should also start thinking about how the 2026 Roth requirement will affect their tax picture and retirement income mix.
The right approach will always depend on your income, tax bracket, retirement timeline, and cash flow. Our team can help you confirm the exact limits and options available in your employer plan, determine how much to contribute and whether pre-tax, Roth, or a mix is most appropriate, and coordinate your workplace plan catch-ups with IRA contributions and other savings strategies. If you have questions or would like us to review how the new 2025 rules may affect your retirement plan, we are always here to help.