Most people think of retirement as a period when you live comfortably, with the time, money, and other resources available to enjoy a fulfilling lifestyle. To achieve these retirement goals, you need to plan ahead financially. That includes contributing regularly to a retirement savings plan. Once you reach age 50, you can make additional ‘catch-up’ contributions to help your retirement nest egg grow faster. And in 2025, new “super” catch-up contribution limits benefit those turning ages 60 to 63 even more. Here we outline the details of how and when to make retirement catch-up contributions.
If you’re already 50 or older, or you’re turning age 50 before year-end, you may be entitled to make additional ‘catch-up’ contributions to your IRA or employer-sponsored retirement plan. These catch-up contributions are in addition to any regular contribution amounts you may make.
Catch-up contributions are designed to help you increase your retirement savings more rapidly during the countdown to your retirement. This opportunity is available for the full year in which you turn age 50 and each year thereafter.
Making catch-up contributions to your retirement plan not only allows you to save more towards your retirement goals, but it typically also helps to reduce your taxable income for the current year.
Note that Roth contributions do not reduce your taxable income for the year in which you contribute. However, all future earnings and withdrawals will be tax-exempt.
How Much Can I Contribute?
How much you can contribute as a catch-up contribution depends on the type of retirement plan you have and the tax year for which you’re making the contribution. Catch-up contributions can be made to traditional and Roth IRAs, as well as to 401(k) plans and certain other employer-sponsored retirement plans.
Check with your plan administrator, as not all employer-sponsored retirement plans allow for catch-up contributions.
Traditional Catch-Up Contributions
For 2025, traditional and catch-up contributions are as follows:
| Plan Type | 2025 regular contribution | 2025 catch-up contribution |
|---|---|---|
| 401(k) | $23,500 | $7,500 |
| 403(b) * | $23,500 | $7,500 |
| 457(b) TSP * | $23,500 | $7,500 |
| Simple | $16,500 | $3,500 |
| Traditional IRA | $7,000 | $1,000 |
| Roth IRA | $7,000 | $1,000 |
*403(b) and 457(b) plans have additional special catch-up rules that may apply. Consult your plan coordinator.
New “Super” Catch-Up Contributions (for those turning 60, 61, 62, or 63 in 2025)
Also starting in 2025, “super” catch-up contributions are higher for those turning age 60, 61, 62, or 63 before the end of calendar year within the year you are making catch-up contributions. Beware if you are 63 and turning 64 before the end of the year, you are not eligible for the higher catch-up amount and revert to the normal 50+ limits. The new “super” catch-up contributions for tax year 2025 are as follows:
| Plan Type | 2025 regular contribution | 2025 catch-up contribution |
|---|---|---|
| 401(k) | $23,500 | $11,250 |
| 403(b) * | $23,500 | $11,250 |
| 457(b) TSP * | $23,500 | $11,250 |
| Simple | $16,500 | $5,250 |
| Traditional IRA | $7,000 | $1,000 |
| Roth IRA | $7,000 | $1,000 |
*403(b) and 457(b) plans have additional special catch-up rules that may apply. Consult your plan coordinator.
How to Elect Your Catch-Up Contributions
To take advantage of catch-up contributions, you’ll need to make a special election. If you’re contributing to an employer-provided plan, contact your employer’s payroll representative and/or retirement plan administrator to make arrangements for your increased contributions. If you’re self-employed, you should also contact your plan administrator, if applicable.
When to Elect Your Catch-Up Contributions
It’s important to note that you don’t need to wait until your actual birthday to begin making catch-up contributions. As an example, even if your birthday is in December 2025, your January paycheck can include catch-up contributions. Starting the catch-up contributions at the beginning of the year is recommended so that you spread them equally throughout the year, versus making significantly larger contributions later in the year.
SageVest Wealth Management is here to help you achieve your long-term personal and financial objectives. The most common financial goal is planning for your retirement. SageVest is committed to helping you maximize your financial potential both pre- and post- retirement. Please contact us to discuss aspects of your retirement planning and broader financial wealth objectives.
