Secure Act 2.0 in 2025: Higher Catch-Up Contributions Available for Ages 60 to 63

A new retirement savings rule is in effect for 2025, providing employees aged 60 to 63 with a significant opportunity to increase their retirement contributions before reaching full retirement age.

As of this year, the Secure Act 2.0 provision allowing for higher catch-up contributions is active, and employers and employees should both understand how it works. Whether you’re trying to help your team save smarter or reviewing your payroll system settings, this article will guide you through the key facts, eligibility rules, and what to do next.

Table of Contents

• What Is the Secure Act 2.0?
• What Are Catch-Up Contributions?
• What’s New in 2025: The Super Catch-Up Contribution
• Who Is Eligible to Participate in Super Catch-up Limit with Secure Act 2.0?
• How Excelforce Supports Super Catch-Up Contributions
• What Employers Need to Do in 2025
• What Employees Should Know About Secure Act 2.0 Higher Catch-Up Contributions
• Why This Matters: Retirement Gaps Are Real
• Final Thoughts
• Frequently Asked Questions (FAQs) About Secure Act 2.0 Higher Catch-Up Contributions

What Is the Secure Act 2.0?

The Secure Act 2.0 (passed in December 2022) was designed to modernize and strengthen the U.S. retirement system. While many of its provisions began rolling out in 2023 and 2024, one of the most notable took effect this year, the “super catch-up” contributions for employees aged 60 through 63.

This gives a specific age group the chance to make even larger contributions to their retirement plans, a strategic boost in the final years before retirement.

What Are Catch-Up Contributions?

Catch-up contributions are additional retirement plan contributions allowed for employees age 50 and older. For 2025, the standard catch-up contribution limit for 50+ employees is $7,500 (based on 2024 figures, pending IRS updates).

These contributions are added on top of the standard deferral limit, which is currently $23,000, bringing the total possible contribution to $30,500, unless the employee qualifies for the new super catch-up.

What’s New in 2025: The Super Catch-Up Contribution

As of January 1, 2025, the Secure Act 2.0 introduced a temporary higher catch-up contribution limit exclusively for employees aged 60 to 63.

These individuals can now contribute the greater of $10,000 or 150% of the standard catch-up limit to qualified retirement plans such as:

• 401(k)
• 403(b)
• Governmental 457(b) plans

For 2025, the likely super catch-up limit is: $11,250 (150% of $7,500).

Pending any updates from the IRS, this is the amount eligible employees can contribute on top of the standard deferral limit.

Who Is Eligible to Participate in Super Catch-up Limit with Secure Act 2.0?

Employees must meet all of the following conditions to qualify for the higher contribution:

• Be aged 60, 61, 62, or 63
• Participate in a qualified retirement plan that allows for catch-up contributions
• Elect to make catch-up contributions through their plan or payroll provider

After age 63, the employee's contribution will revert back to the standard catch-up contribution limit for ages 50 and older.

Secure Act 2.0 Quick Age Chart:

How the 2025 “Super Catch-Up” Works for Ages 60–63

Thanks to the SECURE 2.0 Act, employees aged 60, 61, 62, or 63 can make larger “super catch-up” contributions. Instead of the regular $7,500 age-50+ catch-up limit, these workers can contribute the greater of $10,000 or 150% of that limit, which equals $11,250 in 2025. Combined with the standard IRS contribution limit of $23,000, that means eligible employees can put away up to $34,250 in their workplace retirement plan this year.

It’s important to note this special “super catch-up” limit of $11,250 replaces the standard $7,500 age-50+ catch-up. You don’t get both. That means the maximum employee deferral for someone in this age range is $23,500 + $11,250 = $34,750.

How Excelforce Supports Super Catch-Up Contributions

At Excelforce, we’ve updated our Payroll and Benefits systems to fully support Secure Act 2.0 super catch-up contributions starting in 2025.

Starting in 2025, Excelforce will offer super catch-up contributions for employees aged 60–63 who participate in a 401(k), 403(b), or governmental 457(b) plan. Eligibility is based on your age as of December 31 of the contribution year, using the same age-calculation method as regular catch-up contributions for employees 50 and older. This enhanced limit is not available for 457(b) plans sponsored by tax-exempt organizations.

Here’s how it breaks down for 2025:

• Employees aged 49 or younger are not eligible for catch-up contributions.
• Starting the calendar year they turn 50 (even if their birthday is late in the year), employees become eligible to make regular catch-up contributions
• Starting the calendar year they turn 60, employees qualify for the higher super catch-up contribution limit for the entire year.
• Starting the calendar year they turn 64, employees revert back to the regular catch-up contribution limit for the entire year.

For example, if an employee turns 62 in July 2025, they are eligible to make super catch-up contributions for all of 2025, even the months before their birthday. Eligibility is always determined based on age as of December 31 of the contribution year.

Our platform automatically recognizes employee ages and plan eligibility, applies the correct limits, and processes contributions without manual work. Whether your organization uses percentage-based or flat-dollar elections, our platform ensures proper tracking.

You don’t have to configure it from scratch; we’ve already built the logic into your retirement contribution profiles.

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What Employers Need to Do in 2025

If you're an employer, here’s how to prepare now that the provision is live:

• Confirm your plan supports catch-up contributions (and this new age 60–63 rule). Coordinate with your benefits or retirement plan advisor about employee elections and opt-outs
• Inform eligible employees about their new contribution options
• Excelforce automatically applies the correct catch-up and super catch-up limits based on each employee’s age. There’s no need for employers to take manual steps to activate this feature. Once an employee turns 60 through 63 during the calendar year, the system adjusts their contribution limits accordingly, allowing them to contribute up to the higher super catch-up amount if they choose.

What Employees Should Know About Secure Act 2.0 Higher Catch-Up Contributions

Employees aged 60 to 63 can take action now to increase their 2025 contributions by:

• Reviewing their current 401(k) or retirement plan elections
• Updating their contribution amount to take advantage of the new higher limit
• Consulting their financial advisor to determine if maximizing this benefit makes sense for their goals

Why This Matters: Retirement Gaps Are Real

According to Fidelity, workers age 60–67 need 10 to 12 times their annual salary saved by retirement to maintain their lifestyle, but many fall short. This new provision provides a final push during prime earning years to help close that gap.

Source: Fidelity Retirement Savings Guidelines, 2024

Final Thoughts

Now that 2025 is here, the Secure Act 2.0’s higher catch-up contribution limit for ages 60–63 is more than a policy; It’s a real advantage for workers nearing retirement. Employers that offer this benefit show they’re invested in their employees’ long-term well-being.

At Excelforce, we’ve already done the work behind the scenes to make these contributions smooth and seamless, from age tracking and deduction logic to plan configuration and employee self-service.

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Frequently Asked Questions (FAQs) About Secure Act 2.0 Higher Catch-Up Contributions

©2025 - Content on this blog is intended to provide helpful, general information. Because laws and regulations evolve, please consult an HR professional or legal expert for guidance specific to your situation.