Starting in 2025, older workers can save even more for retirement via 401(k) catch-up contributions. Here’s what investors need to know.
While catch-up contributions for workers age 50 and older will remain at $7,500, investors age 60 to 63 can save more, thanks to Secure 2.0.
The higher catch-up contribution for workers age 60 to 63 increases to $11,250 in 2025. These workers can defer a total of $34,750, which is about 14% higher than 2024.remains unchanged at $7,500 for investors age 50 and older, workers age 60 to 63 can save even more, thanks toOp-ed: Investing lessons from a baseball card collector. Diversify to find the all-stars
Starting in 2025, investors age 60 to 63 can make catch-up contributions of up to $11,250 on top of the $23,500 deferral limit. Combined, these workers can defer a total of $34,750 for 2025, which is about 14% higher than 2024."This can be a great way for people to boost their retirement savings," certified financial planner Jamie Bosse, senior advisor at CGN Advisors in Manhattan, Kansas, previously told CNBC.
and savings, primarily due to debt, insufficient income and getting a late start, according to a CNBC survey, which polled roughly 6,700 adults in early August. For 2025, the"defined contribution" limit for 401 plans, which includes employee deferrals, company matches, profit sharing and other deposits, willThe 401 catch-up contribution change is"very good" for older workers who want to save more for retirement, said Dave Stinnett, Vanguard's head of strategic retirement consulting.
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