For most people, preparing for retirement is a marathon, not a sprint. It’s a process of using a variety of investing tools combined with consistent investing and time.
But once in a while, if the rules bend in your favor—all the better.
Tucked in the SECURE 2.0 Act in Section 109 was a provision that allows individuals aged 60-63 to make an additional contribution to their retirement plan. However, the rules are a bit different depending on what retirement plan you are talking about.1
Here’s a quick summary:
Age requirements: You must be 60, 61, 62 or 63 years of age by the end of the calendar year to qualify for the “super catch-up” provision. The rules revert at age 64.
Who’s it for? Participants in 401(k), 403(b) and Governmental 457 plans.
Who’s it not for? Traditional IRAs and Roth IRAs.
“Complete a spiritual gift assessment. Discover your gift(s) and put them into practice to bring Glory and Honor to Him! Remember, ‘growing things change.’” I Corinthians 12; Romans 12
Here’s a table that breaks down the information. Keep in mind that the IRS releases update contribution limits in the fourth quarter each year; therefore, these numbers might be subject to adjustments as early as late October or early November.2
Participant Age | Standard Contribution Amount | Catch-up Contribution Amount | Total Contribution Available |
|---|---|---|---|
50-59 | $23,500 | $7,500 | $31,000 |
60-63 | $23,500 | $11,250 | $34,750 |
64+ | $23,500 | $7,500 | $31,000 |
A Tale of Two Portfolios
Maxwell and Mindi are age 50, and both participate in their employers 401(k) plans. Both also anticipate retiring at age 67.
Max expects to contribute the maximum each year and wants to take advantage of the new rule when he hits 60. Mindi, on the other hand, is a bit more minimal and is prepared to put $12,000 into her account (which includes her employer’s matching contribution) for the next 17 years.
Let’s illustrate how they will fare if their accounts get a hypothetical 5% annual rate of return.
Conclusion: While Maxwell’s account is worth just under $1 million, Mindi’s disciplined investing has helped her build her retirement account over time. Both are using their company plans as part of their strategy to prepare for the future, and both should be applauded for their efforts. Note: The IRS from time to time increases the 401(k) contribution limits, so Maxwell will have the opportunity to boost his amount during the next 17 years.
“As you are rewarded financially for the accomplishment God allows you to achieve, remember to maintain balance!” writes Mick Owens, author of the popular book Diamond of Life: The Five P’s of Success and Significance. “Figure out ‘how much is enough.’ Use your resources to help others with fewer blessings. Be a wise steward.”
Putting it in perspective: While the “Super Catch-Up” has a compelling name, if someone were to take full advantage of the new limit, it would currently amount to $15,000 over four years—a tidy sum, but not an amount that might “move the needle.” However, when we take a close look at your situation, we may find it’s an important move as you prepare for retirement.
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Fidelity.com, May 20, 2025
