Extra Catch-Up Contributions for Ages 60–63: How We Got Here
Starting in 2025, older workers have the opportunity to contribute even more to their retirement accounts thanks to a special catch-up provision for those aged 60 to 63. This change was included in the SECURE 2.0 Act—bipartisan legislation aimed at improving retirement readiness in the US.
Here’s how this new rule came to be, and what it entails.
The Basics of Catch-Up Contributions
Catch-up contributions have been part of retirement plan rules since 2002, allowing workers aged 50 and over to contribute more to their 401(k) or 403(b) plans than the standard IRS limit.
As of 2024, the regular contribution limit was $23,000, and the catch-up amount for those 50+ was $7,500, for a total possible contribution of $30,500.
These additional contributions are especially helpful for workers who may not have been able to save consistently earlier in their careers.
Why Congress Took It Further
While the original catch-up provisions were a step forward, policymakers recognized that the 50+ category was too broad. Someone who is 50 may still have 15–20 years left in the workforce, whereas someone who is 63 may be just a couple of years from retirement.
As discussions for the SECURE 2.0 Act progressed in 2022, lawmakers on both sides of the aisle saw value in providing a targeted boost for those in their early 60s—an age range where many are in their peak earning years and especially focused on retirement planning.
There was also concern about the adequacy of savings for this group. Data showed that many Americans in their 60s were behind on retirement goals, and giving them a higher limit for a limited time could help close that gap.
After months of negotiation, the final version of SECURE 2.0 included a special catch-up enhancement just for ages 60 through 63.
What the New Provision Allows
Starting in 2025, individuals aged 60–63 can make higher catch-up contributions than those aged 50–59 or 64+. Specifically, they’ll be allowed to contribute the greater of:
$10,000, or
150% of the regular catch-up limit for those aged 50+.
This amount will also be indexed for inflation annually. For example, if the regular catch-up limit remains $7,500 in 2026, then 150% would equal $11,250—making that the maximum catch-up contribution for people in the 60–63 age bracket.
Once individuals turn 64, they return to the standard catch-up limit.
Review our 2025 Retirement Plan Contributions Flyer here.
An Evolving Retirement Policy Landscape
The creation of this rule reflects a broader shift in retirement policy: moving from one-size-fits-all to more tailored solutions based on age and income levels. The age 60–63 catch-up is just one piece of a larger package that includes automatic enrollment, Roth-related changes, and incentives for small businesses to offer plans.
The SECURE 2.0 Act passed with broad bipartisan support in December 2022 and was signed into law as part of the Consolidated Appropriations Act of 2023. The retirement section of the bill had been in development for over a year, with input from lawmakers, industry groups, and retirement policy experts.
The enhanced catch-up contribution for ages 60–63 is a direct result of that process—a small but meaningful change aimed at helping Americans better prepare for retirement in their final working years.
If you have any questions about retirement contributions or plan design, get in touch with us at https://crs401k.com/contact/.
Written by Curtis Tudor
Curtis Tudor is Regional Sales Director at CRS. Curtis can be reached via email at ctudor@crs401k.com.