The 401k super catch-up provision is an Internal Revenue Service (IRS) rule that allows individuals who are age 50 or older to make additional contributions to their 401(k) retirement plans.
The super catch-up provision was created in 2001 and has been modified several times since then. The current limits for 2023 are $7,500 for traditional and safe harbor 401(k) plans, and $6,500 for SIMPLE 401(k) plans. These limits are indexed to inflation and are adjusted each year.
The SECURE Act 2.0, signed into law in December 2022, made significant changes to retirement savings rules, including increasing catch-up contribution limits for individuals age 50 and older.
These catch-up contributions allow individuals to save more money for retirement in the years leading up to retirement, when they may have higher earnings and are trying to make up for lost savings. For 2023 and 2024, the catch-up contribution limit is $7,500. In 2025, the catch-up contribution limit will increase to $10,000.
Under the SECURE Act of 2019, individuals can make catch-up contributions to their retirement accounts once they reach age 50. These contributions are in addition to the regular contribution limits, and they allow individuals to save more money for retirement. The catch-up contribution limit for 2023 is $1,000 for 401(k) plans and $750 for IRAs, and it is scheduled to increase to $1,500 for 401(k) plans and $1,000 for IRAs in 2025.
Catch-up contributions can be a valuable tool for individuals who are behind on their retirement savings. They can help individuals to increase their retirement savings and reduce the risk of running out of money in retirement.
Catch-up contributions are additional contributions that individuals can make to their retirement accounts beyond the annual contribution limit. For 2023 and 2024, the catch-up contribution limit is $7,500. For 2025, the catch-up contribution limit is $8,000.
Catch-up contributions can be a valuable tool for individuals who are behind on their retirement savings or who want to save more for retirement. Catch-up contributions are made on a pre-tax basis, which means that they reduce your current taxable income. This can save you money on taxes now and help you grow your retirement savings faster.
