WealthBridge Cables 2025-01.pdf
“SUPER CATCH-UP” TO SUPER-SIZE SAVINGS
Secure 2.0 brought many changes to the retirement savings landscape. One change—the introduction of the “super catch-up”—allows for certain workers to save even more in their corporate retirement plan. In 2025, the catch-up contribution limit for workers ages 60, 61, 62, and 63 is increased from $7,500 to $11, 250. When added to regular contribution limits, these workers are now able to save up to $34,750 per year in their company 401(k), 403(b), or 457(b) plan.
Retirement Plan Contribution Limits for 2025
Worker Age 2025 | Regular Contribution Limit | Catch-Up Contribution Limit | Total Contribution Limit |
Under 50 | $23,500 | 0 | $23,500 |
50 – 59, 64+ | $23,500 | $7,500 | $31,000 |
60, 61, 62, 63 | $23,500 | $11,250 | $34,750 |
USE THE “SUPER CATCH-UP” TO GET MORE MONEY IN YOUR ROTH ACCOUNTS
2024 client discussions often focused on how to get more money into Roth accounts considering the potential increases in future tax rates or to manage taxable distributions for Social Security benefit and Medicare premium planning purposes. The “Super Catch-Up” allows for even more into a Roth account.
No Income Limits on Roth 401(k) / 403(b) / 457(b) contributions
Roth IRA contributions are phased out for workers making over certain limits. For 2025 those limits are $153,000 (MAGI) for single workers and $228,000 (MAGI) for those married, filing jointly. There are no income limits for Roth 401(k), 403(b), or 457(b) plans, however. If you’re unable to make Roth IRA contributions because of these income limits, you should take advantage of your company’s plan to make Roth contributions. The “Super Catch-Up” allows you to contribute even more!
Roth Distributions Can Help Manage Medicare Premium Levels
In addition to the tax benefits of Roth distributions (Roth distributions are income- and capital-gains tax free), they also help manage Medicare premium levels. Medicare premiums are means-tested based on your reported income. Social Security benefits, pension income, and traditional pre-tax retirement plan distributions all add to your taxable income and can create higher taxable income, leading to higher Medicare premiums. Roth distributions, however, are not taxable and thus do not create the possibility of higher premiums![i]
MANDATORY ROTH CATCH-UP IN 2026
Secure 2.0 also contained a provision requiring catch-up contributions for workers making more than $145,000 at an employer be Roth contributions-only. If a plan does not contain provisions allowing for Roth catch-up contributions, then no catch-up contributions can be made. This provision was delayed by the IRS to begin in 2026[ii] to allow plans time to accommodate this provision.
[i] WealthBridge Capital Management does not offer tax advice. Please consult your tax professional for information specific to your situation.
[ii] IRS Notice 2023-62