'Super Catch-Up' Contributions for 401k Available In 2025

As retirement planning evolves, new opportunities for boosting your savings are emerging. One of the most significant changes comes in 2025 with the introduction of the "Super Catch-Up" contribution under the SECURE 2.0 Act.

At JTM Williams Capital Management, we understand the importance of maximizing retirement savings, especially during key years. In this overview, we'll break down the details of the new "Super Catch-Up" contributions and explain how you can make the most of this opportunity in 2025 and beyond.

What Do The 'Super Catch-Up' Contributions Mean For You?

There are announcements of new contribution limits and regulations, but what does this mean for you? Let's dive in.

Maximizing Retirement Savings During Key Years

Starting in 2025, under the SECURE 2.0 Act: 

• Workers aged 60 to 63 can contribute up to $34,750 to their 401(k) or similar retirement plans—$4,250 more than in 2024. 

• Workers aged 50-59 and 64 or older, the catch-up limit for 2025 will be $31,000, which is $500 more than the 2024 limit.

Contributions during these years can counterbalance market fluctuations, prepare for future expenses, and increase financial security, giving you a better foundation for a comfortable retirement.

To qualify for the "super catch-up," workers must turn 60-63 during the year, and the increased limit applies as soon as they reach the qualifying age. Employers typically adopt catch-up contributions, though it's not required by federal law.

Tailored Tax Strategies for High-earners

In 2026, employees earning over $145,000 in 2025 will be required to place all catch-up contributions into Roth accounts. Contributions will be taxed upfront, but withdrawals in retirement will be entirely tax-free, potentially reducing tax burdens during retirement when consistent income is essential. 

For high earners, this change provides an opportunity to lock in today's tax rate, allowing retirement funds to grow without future tax liabilities. While this can result in higher taxes now, the long-term benefits of tax-free withdrawals may outweigh the immediate impact, particularly for those expecting to be in a higher tax bracket in retirement. 

Making the Most of Underutilized Catch-Up Benefits

In 2025, catch-up contributions for 401(k) plans are higher than ever for specific age groups, and IRA limits remain steady at $7,000, with an additional $1,000 for those aged 50 and older. Despite the advantages, only 15% of eligible savers actually use these contributions, according to Vanguard. 

In fact, a recent survey at CNBC concluded: "40% of American workers are lagging in their saving and planning for retirement, and that 21% of retirees have no savings at all."

Applicable opportunities for boosting retirement savings can help bridge savings gaps and create retirement security. Do you need help figuring out where to start? JTM Williams Capital Management is here to help. 

Navigating 'Super Catch-Up' Contributions with JTM

Catch-up options, though underused, represent a key opportunity for retirement readiness—one that can make a lasting impact on your future financial picture. 

Navigating the 'Super Catch-Up' Contributions can be complex, so whether you are planning ahead or are already impacted, JTM is here to tailor a strategy to best suit your goals. 

We help you develop a personalized retirement strategy that aligns with your unique financial situation, helping you maximize contributions, optimize tax advantages, and work toward your long-term goals. We keep track of changing regulations, such as the 2026 requirement for high earners to make catch-up contributions to Roth accounts, so that your retirement plan stays tax-efficient and adaptable. 

As always, we advise you to consult with your tax professional to maximize your contributions. 

Don't miss out on a potentially valuable opportunity. Contact us today to schedule a consultation and start planning for a more secure retirement.