Make the Most of 2025’s Super Catch Up at Ages 60 to 63

Why this window matters

If you are 60 to 63 and still working, the rules give you a short window to add more money to your workplace plan. Those extra dollars raise your savings base right before retirement. A higher base can support steadier withdrawals, smaller tax surprises, and more choice on timing for Social Security and required distributions.

2025 contribution limits at a glance

For 401(k), 403(b), and governmental 457(b) plans the base salary deferral is $23,500. If you are 50 to 59 or 64 and older, the standard catch up is $7,500 for a $31,000 total. If you are 60 to 63, the super catch up is $11,250 for a $34,750 total.

For SIMPLE IRAs the base salary deferral is $16,500. If you are 50 to 59 or 64 and older, the catch up is $3,500 for a $20,000 total. If you are 60 to 63, the enhanced catch up is $5,250 for a $21,750 total.

Two planning notes. A governmental 457(b) does not aggregate with a 401(k) or 403(b), so some savers can fund both sets of limits. The governmental 457(b) also has a special catch up in the last three years before retirement, and it cannot be combined with the age-based catch up.

Choosing between pre-tax and Roth

This choice is about tax brackets. If you are in your last high-earning years, pre-tax deferrals can lower the current bill and may set up Roth conversions later when income is lower. If you expect to face higher taxes in retirement, Roth can create more flexibility because qualified withdrawals are tax free. I like to model the year with salary, bonus, equity comp, and the catch up to find the break-even. Filing status later matters as well. A surviving spouse can face a higher rate on the same income.

Lawmakers also added Roth-only treatment for some catch ups once wages cross a threshold. The IRS gave employers more time to implement this. If you are near the threshold, confirm with payroll so you are not surprised midyear.

Coordinate with the pre-RMD years

The years after work stops and before required distributions begin can be useful. Larger savings now can support planned Roth conversions later or steady withdrawals that keep taxes in a comfortable band. There is no single right answer. We test the path that gives you more spending power with fewer tax surprises over time.

Mind the Medicare thresholds

Income in one year can raise Medicare premiums two years later. That is the IRMAA effect. Extra pre-tax savings can help you stay under key bands once you enroll. Extra Roth savings do not lower current income, so it is important to check that higher contributions do not push you into a higher bracket in a bonus year.

Get the payroll details right

Most mistakes happen in setup. Log in and set the per-paycheck rate that actually reaches the full amount by year end. If you have irregular pay, make sure the percentage also applies to those checks. If your employer offers both a 401(k) and a governmental 457(b), confirm how the limits stack. The 457(b) special catch up near retirement can be powerful, but only if cash flow and taxes allow it.

If you’d like help tuning the per-paycheck rate and match rules, our Services page explains how we handle plan setup support

A simple plan to act this month

Confirm your plan allows the enhanced catch up and ask HR when payroll will recognize it. Set your per-paycheck rate so the totals land where you want by year end. Decide where the extra dollars should go, pre-tax or Roth, based on this year’s bracket and your path to Medicare. Tie those choices back to your retirement income map. The goal is a clear plan, not just a bigger number.

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