--- title: "SECURE 2.0: Increased Catch-up Limits for Employees Aged 60-63" date: 2023-08-22 author: "Monica Martinez" categories: - name: "SECURE 2.0" url: "/category/secure-2-0.md" --- # SECURE 2.0: Increased Catch-up Limits for Employees Aged 60-63 *Updated November 14, 2025* SECURE 2.0 introduced two significant changes to employee catch-up contributions: [one requires catch-ups made by high-earning individuals to be Roth (after-tax)](http://pinnacle-plan.com/2023/08/secure-2-0-requires-roth-only-catch-up-only-for-high-income-individuals/), and the other increases catch-up amounts for individuals aged 60-63. ### Background Retirement plans that permit employees to save (defer) a portion of their current earnings for retirement, such as a 401(k) plan or a 403(b) plan, often include a feature allowing employees aged 50 or older to contribute an additional amount, called a catch-up contribution. The annual amount, $8,000 in 2026[1](#ab343b08-31e5-4b21-9496-097081c2c1c8), is in addition to the maximum deferral limit set for the tax year, $24,500 in 2026. ### Plan Years Beginning in 2025 Participants aged 60-63[2](#ab7fdc74-b78d-441f-93ef-b9193e218c14) may make higher catch-up deferral contributions. The increased catch-up limit is the greater of $10,000 or 150% of the regular catch-up limit in effect for the calendar year. For 2026, this results in the *higher catch-up limit* being $11,250. Note: employees age 50-59 or 64 and older will be eligible to continue making the *regular catch-up contributions* as indexed for inflation, $8,000 in 2026. Final regulations published September 16, 2025 make clear this increase is an optional provision; employers who offer a catch-up feature and do *not* wish to implement the increased limits will need to incorporate language in their plans making clear that references to catch-up contributions do not include the increase. ### Summary: - Higher catch-up amounts apply for employees aged 60-63 beginning in 2025. - Beginning on January 1, 2026[3](#aaa6bc72-e59e-4941-b589-ddeb132de9be), catch-up deferral contributions by employees with FICA wages exceeding $150,000 (adjusted annually for inflation) in the *preceding* year must be Roth. A plan must include a Roth feature (at least for catch-up purposes) for these high earners to have an opportunity to make a catch-up contribution beginning in 2026. - Employers must work with their service providers to review their plan documents, align their payroll systems, communicate the new rules to employees, and confirm implementation with plan investment platforms. ### Let Pinnacle Plan Design Help Consultants at Pinnacle Plan Design are actively monitoring new guidance concerning SECURE 2.0. This represents our understanding of the laws at this time. Additional guidance will provide additional clarity. If you have any questions about the rules changing catch-up contributions in your retirement plan, don’t hesitate to contact us at (520) 618-1305. *The content of this page is for general information only. While it is believed to be accurate and reliable as of the posting date, it may be subject to change as additional guidance becomes available. It is not intended to provide investment, tax, or legal advice. For advice regarding your specific circumstances, please seek services of an appropriate independent legal, tax, or investment professional.* --- 1. View [current contribution limits](http://pinnacle-plan.com/pension-limits/) [↩︎](#ab343b08-31e5-4b21-9496-097081c2c1c8-link) 2. Age is based on the birthday the participant will celebrate during the calendar year. The regular catch-up limit first applies to someone the calendar year they turn 50. The increased catch-up limit is available to participants turning age 60, 61, 62, or 63 before the close of the calendar year. [↩︎](#ab7fdc74-b78d-441f-93ef-b9193e218c14-link) 3. Originally, this provision was effective for tax years beginning 1/1/2024 and later. However, in [Notice 2023-62](https://www.irs.gov/pub/irs-drop/n-23-62.pdf), published on Aug 25, 2023, the IRS delayed the effective date of this requirement to 2026. [↩︎](#aaa6bc72-e59e-4941-b589-ddeb132de9be-link)