As part of SECURE 2.0 Act, participants ages 60-63 will be permitted to make increased catch-up contributions beginning in 2025. These new regulations increase the annual catch-up contribution limit to the greater of:
- $10,000, or
150% of the age 50+ catch-up limit for employees who have reached ages 60-63 by December 31 each year. - As these new regulations approach, please keep the following in mind:
Your plan document will 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, TSC 401K 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 recordkeepers may require clients to take action to update this feature. Watch for communication from your recordkeeper regarding this update.
Notify your current payroll provider or update your internal payroll system to ensure they are ready to allow increased catch-up contributions from your eligible participants ages 60-63 by the end of the 2025 tax year.
