Starting in 2025, the SECURE 2.0 Act enhances retirement saving opportunities for certain employees. If you will be between the ages of 60 and 63 at any point during the year, you may be eligible to make an additional “super catch-up” contribution.

For 2025, the super catch-up amount is $11,250, which exceeds the standard catch-up limit of $7,500. This means that if you are between ages 60 and 63, your total contribution limit could be as high as $34,750.

Beginning in 2026, high-income earners, defined as individuals aged 50 or older who earned more than $145,000 in FICA wages the previous year, will be required to make catch-up contributions differently. Under this new rule, catch-up contributions to workplace retirement plans, such as 403(b)s, must be made on a Roth basis, using after-tax dollars. 

This rule takes effect for taxable years beginning after December 31, 2025.

In summary, high-income individuals aged 50 and older can still make catch-up contributions, but starting in 2026, those contributions must go into a Roth account and be made with after-tax dollars, as required by the SECURE 2.0 Act.

Key Considerations:

• No Immediate Tax Deduction: Unlike traditional pre-tax contributions, Roth catch-up contributions are made after taxes, so you won't receive an immediate tax deduction.
• Tax-Free Withdrawals: Earnings on Roth catch-up contributions grow tax-free, and qualified withdrawals in retirement are also tax-free.