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In today’s blog, we’re going to break down some of the changes retirement savers age 50 and over should know when it comes to catch-up contributions.
We’ll dive into the limits for 2025, the enhanced or Super Catch Up for those of you between the ages of 60 and 63 in 2025, in addition to why the 2026 mandatory Roth Catch-Up could stop certain pre-tax catch-ups and what it could mean for you.
For those of you not aware, catch-up contributions first appeared in 2002 with a $1,000 allowance, and since then they’ve steadily increased over time.
And while some might say that the consistency was powerful, that simple framework has changed.
Through the SECURE 2.0 Act, Congress introduced two major changes: starting this year, a special “super catch-up” is available for savers ages 60 through 63, and beginning in 2026, high earners who qualify for catch-ups will be required to route them into a Roth account.
Now, why does this matter? Because in concept, what used to be one set of extra savings rules is now split by both age and income.
And if you’re not aware of these changes, you could potentially either miss the chance to add more or find out your contributions no longer work the same way you assumed.
To ground this in real numbers, let’s look at what’s going on.
You’re probably already aware of the 2025 limits to a 401k or 403b: the regular elective deferral ceiling is at $23,500, and the standard age 50+ catch-up is $7,500.
Taken together, if you are eligible, you can contribute $31,000 to your employer retirement plan, this year.
And for those who are between age 60 and 63, the “super catch-up” goes even higher.
At the same time, there’s another rule quietly waiting in the wings.
When Congress passed SECURE 2.0, the original plan was for the Roth mandate to start as early as 2024. But the IRS recognized that payroll providers and recordkeepers weren’t ready to handle the changes. This led to a two-year administrative delay, pushing the requirement back to January 1, 2026.
For savers, all of this could signal an important shift in planning.
For more than 20 years, the playbook felt more or less, straightforward.
Now the playbook includes narrow age windows, inflation-adjusted limits, different tax treatments depending on whether you’re over or under the $145,000 wage threshold, and a looming Roth-only mandate for some participants.
With regards to the enhanced or Super Catch Up, in 2025, that base contribution is still $23,500 and the regular catch-up is still $7,500.
But if you fall within ages 60 through 63, the catch-up amount increases to 150 percent of the regular limit.
This year, that equates to $11,250, rather than $7,500.
Put together, the numbers are straightforward: $23,500 base plus $11,250 super catch-up equals $34,750 total possible contributions in 2025.
These new limits in theory may be useful for workers who started slower and need a late-career push to meet their targets, but even disciplined savers could potentially benefit from an extra gear in their contribution capacity.
Now again, it’s important to note that the Roth Rule, starting in 2026, could impact your planning.
Here’s the rule in plain terms: beginning January 1, 2026, if your prior calendar-year FICA wages from the plan-sponsoring employer exceed $145,000, all of your catch-up contributions for that year must be made via Roth Contributions.
This income test is not based on your adjusted gross income, not based on household income, and not even based on all of your wages combined. It focuses only on FICA wages—the amounts reported in Boxes 3 and 5 of your W-2—from the specific employer who sponsors the plan.
That threshold is also indexed for inflation, so the $145,000 number should rise in future years.
This new Roth requirement applies only to the catch-up portion, meaning any dollars contributed above the base elective deferral limit.
Amounts contributed up to that ceiling, which this year is $23,500, can still be pre-tax, regardless of your income level.
Only the contributions above that line, the catch-up dollars, must be Roth if you exceeded the wage threshold in the prior year.
That means high earners may still retain pre-tax treatment for their standard deferrals if they prefer, but any additional catch-up amount is made with Roth Contributions.
It’s also worth noting that Roth elective deferrals made earlier in the year can count toward satisfying the Roth requirement for catch-up.
In practice, if you already allocate part of your salary deferrals to Roth before hitting the $23,500 base, those Roth amounts help your plan remain compliant when you move into catch-up territory.
Knowing this detail can allow you to coordinate your payroll elections in an effort to reduce the risk that a mismatch leaves contributions out of compliance later in the year.
The practical effect is that some workers could end up facing higher current taxes on the same contributions they previously made pre-tax.
This next caveat could also potentially throw a wrench in your planning and it all comes down to plan design.
While the Roth mandate may look simple on paper, whether you can actually use catch-up contributions depends on whether your employer’s plan has the right features in place. Many employer sponsored plans do allow for a Roth savings method but some still do not.
And for participants at those particular employers who do not offer Roth contributions, the consequence are that if you exceed the $145,000 FICA wage threshold in the prior calendar year, you cannot make catch-up contributions at all unless the plan has Roth functionality.
Even for plans that already allow Roth contributions, the design decisions affect how the new requirements are handled.
The first is the separate catch-up election, where you make a distinct choice at the start of the year to classify your catch-up dollars as pre-tax or Roth.
And the second is the deemed Roth catch-up, sometimes called the spillover method, where once you reach the regular deferral limit, further dollars automatically contribute into Roth unless you opt out.
Understand that everyone’s plan is different and it’s important to check with your plan administrator to see how these changes may be taking place within your organization.
For anyone age 50 and over who typically strives to max out their Employer Retirement Plan Contributions year after year, it could be useful to prepare for these upcoming changes in a strategic way.
These recent changes come with a multitude of variables to consider in trying to determine whether you can make catch-up contributions at all, how those contributions are taxed, and how much extra room you’ll have in your early sixties.
When approaching this situation with the folks we speak with, the first step we tend to take is to verify their plan’s design.
Understanding if their particular plan allows designated Roth contributions and if they plan to adopt a deemed Roth catch-up (spillover) design before January 1, 2026.
This question helps us plan proactively to try and avoid surprises later on.
The second step is where we determine if the particular client is deemed a high earner under the new rule.
If they are, their catch-up contributions, providing their plan is structured for it, will be made as Roth and if they’re not, they may still have the choice to make the catch-up contributions on either a pre-tax or Roth basis.
The third step is relevant if they are ages 60, 61, 62, or 63 and if they are, do they want to make the enhanced or super catch-up.
The fourth step is where tax-planning comes into play.
In understanding that contributions above the wage threshold would be made as Roth catch-ups in 2026, one’s taxable income could increase if they were making those same contributions on a pre-tax basis prior.
The Final Word:
To make an informed choice about your contribution strategy it could be helpful to speak with your team of advisors and accountants.
By being proactive in tackling this list we are confirming plan design, verifying FICA wages, mapping super catch-up years, and weighing the potential tax trade-offs before we help our clients through any other decisions.
Thanks for reading!
Disclaimer:
Rockline Wealth Management (RWM) is a registered investment adviser located in Islip Terrace, NY. RWM is registered with the U.S. Securities and Exchange Commission. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.
Rockline Wealth Management does not offer tax or legal services. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
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