Investments

Super Catch-up 401(k) Contributions: Are You Eligible to Make Them?

By Chris Duderstadt

January 22, 2025

Super Catch-up 401(k) Contributions: Are You Eligible to Make Them?


Key Points – Super Catch-up 401(k) Contributions: Are You Eligible to Make Them?

  • What Are Super Catch-up 401(k) Contributions?
  • A New Opportunity to Save More as You Near Retirement
  • Maximizing Contributions to Your Workplace Retirement Plan
  • A Super Catch-up 401(k) Contributions Case Study
  • Another SECURE Act 2.0 Provision to Make Note of for 2026
  • 3-Minute Read

What Are Super Catch-up 401(k) Contributions?

If you’re 50 or older and are still working, have you been making catch-up contributions to your 401(k), 403(b), 457, or Thrift Savings Plan? For 2025, the catch-up contribution limit is $7,500.1 However, if you turn 60, 61, 62, or 63 by the end of 2025, you can contribute even more than that by making super catch-up contributions.

The opportunity to make super catch-up 401(k) contributions is possible as of January 1, 2025, following a new SECURE Act 2.0 provision.2 If you turn 60-63 by the end of 2025, you can contribute up to $11,250 instead of $7,500. Let’s look at how much more someone can potentially save for retirement by maximizing contributions to their workplace retirement plan, including catch-up and super catch-up contributions.

A Super Catch-up 401(k) Contributions Case Study

For starters, the maximum contribution you can make to your 401(k) in 2025 prior to any catch-up or super catch-up contribution in $23,500. That was a $500 increase (inflation adjustment) from 2024.

In this short case study, this individual has saved $500,000 to their 401(k) by the time they’ve reached age 50. If they make a full contribution of $23,500 and get an 8% rate of return that amounts to $40,000 ($500,000 x 0.08), they’ll have $563,500 in their 401(k) by age 51. However, that’s before making a catch-up contribution that they’re now eligible for in the year they turn 50. If they make a $7,500 catch-up contribution, that total increases to $571,000.

Think about how much you can potentially increase your 401(k) savings by following these steps each year as you approach retirement. Actually, instead of thinking about that, we’ll show you in Figure 1.

Super Catch-up 401(k) Contributions

FIGURE 1 – Maxing Out 401(k) Contributions with Catch-up and Super Catch-ups

Keep in mind again that these contribution limits are indexed for inflation, so the $23,500 and $7,500 limits will likely change as this individual gets older. We’re still going use those totals, though, as we continue this case study just as a guideline.

Factoring in Super Catch-up 401(k) Contributions

As you can see in Figure 1, this individual would potentially have $1,386,617 in the year that they turn 59 by contributing $31,000 a year ($23,500 plus the $7,500 catch-up) and getting an 8% rate of return. That sets the stage for this individual to begin making super catch-up 401(k) contributions in the year they turn 60.

Over the next four years, they’ll be able contribute an additional $3,750 per year ($23,500 plus the $11,250 super catch-up). Suddenly, by the time they’ve reached 64, they’ve potentially increased their 401(k) savings to $2,219,259 by utilizing catch-up and super catch-up contributions.

Roth or Traditional?

As you’re considering catch-up and super catch-up 401(k) contributions, are you going to make those to the Roth or traditional side of your 401(k)? The answer to that question is … it depends. There are several factors to consider that are tied to your personal situation.

Also, don’t forget to take advantage of your 401(k) employer match. Whether your employer matches dollar for dollar, a fraction of every dollar that you contribute, or a combination of the two, that’s free money from your employer just for saving for retirement. Keep in mind that since the SECURE Act 2.0 became law, employer contributions can now be made to a Roth source.

Another SECURE Act 2.0 Provision Related to Catch-up Contributions

Speaking of SECURE Act 2.0 provisions, there’s another one that’s scheduled to go into effect in 2026 that pertains to catch-up contributions. Beginning in 2026, all catch-up contributions must be made to a designated Roth account if your wages exceed $145,000.3

Should You Be Taking Advantage of Catch-up or Super Catch-up 401(k) Contributions?

Even if you’re not quite 50 and eligible to make catch-up contributions (or 60 to make super catch-up contributions), we want to make sure that you’re aware of these opportunities to save more for retirement. However, if you are eligible to make catch-up or super catch-up 401(k) contributions, don’t just assume that you should do so just because you can. Maybe you’ve already saved enough for retirement and need to start spending your hard-earned wealth?

The begs the question, when is it time to stop saving for retirement? Just like with answering the Roth vs. traditional question, it depends on your unique situation. So, let’s talk about it! Start a conversation with our team to not only learn more about whether catch-up and super catch-up contributions could make sense for you, but more importantly to build a comprehensive financial plan that’s tailored to your goals.

Schedule a Meeting

We hope you’ve found this article on catch-up and super catch-up contributions to be informative and look forward to discussing your wealth management goals with you soon.


Resources Mentioned in This Article

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Other Sources

[1 and 2] https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000

[3] https://www.schwab.com/learn/story/what-to-know-about-catch-up-contributions


Investment advisory services offered through Modern Wealth Management, Inc., a Registered Investment Adviser.

The views expressed represent the opinion of Modern Wealth Management a Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.