Additional “Super” Catch-Up Contributions in 2025
What Are Super Catch-Up Contributions?
As part of the SECURE 2.0 Act, participants who attain ages 60-63 during a calendar year will be permitted to make increased catch-up employee deferral contributions for the year beginning in 2025. These additional catch-up contributions are often referred to as “super” catch-up contributions.
2025 Contribution Limits for Ages 60–63
The new regulations increase the annual super catch-up contribution limit to the greater of:
(1) $10,000, or
(2) 150% of the age 50+ catch-up limit.
For 2025, the maximum catch-up contributions that can be made for employees ages 60-63 would be $11,250 (for a total of $34,750 in employee contributions). For employees who have attained ages 50-59 or ages 64 and older by December 31, 2025, the maximum catch-up contributions that can be made are $7,500 ($31,000 total employee contributions).
Key Actions for Plan Sponsors
If you have participants in your plan who qualify to make super catch-up contributions, please keep the following in mind:
- While participants can immediately take advantage of this option, your plan document will eventually need to be amended to allow these increased catch-up contributions. The deadline for this amendment is December 31, 2026. To encourage participants to save more for retirement, Blue Ridge Associates will select this additional catch-up option as a default. No action will be required, as this change will be part of the SECURE 2.0 Interim Amendment we will prepare for all clients.
- While some recordkeepers may automatically allow for the increased catch-up contributions, some may require clients to take action to update this feature. Watch for communication from your recordkeeper regarding this update.
- Notify your current payroll provider and/or update your internal payroll system to ensure they are ready to allow increased catch-up contributions from your eligible participants by the end of the 2025 tax year.
Questions? We’re Here to Help
If you have questions about implementing super catch-up contributions or ensuring your plan remains compliant, contact your Blue Ridge Associates Consultant for guidance.
