Reminder: Increased Catch-Up Contribution Limit Becomes Effective in 2025

The SECURE Act 2.0 increased the retirement account catch-up limitations for certain taxpayers. The increased limits become effective starting in 2025. For taxpayers who are between ages 60 and 63, the expanded catch-up contribution limit will be equal to the greater of (1) $10,000 or (2) 150 percent of the standard catch-up contribution limit for 2024. The $10,000 limit will also be indexed for inflation. Taxpayers who are 64 and older, or between ages 50 and 59, will be subject to the standard catch-up contribution rate. Note that employers are not required to allow catch-up contributions, but when they do, call catch-up eligible individuals must be entitled to make catch-up contributions. It is not clear whether employers who offer traditional catch-up contributions must offer the expanded catch-up contribution option. For more information on the rules governing catch-up contributions, visit Tax Facts Online. Read More: Link to Q3761.