Catch-up contributions are designed to help participants boost their retirement savings as they get closer to retirement. Recent legislative updates like SECURE 2.0 have expanded and refined these opportunities.
Today, there are three types of catch-up contributions participants may encounter in their 401(k) Retirement Plan.
1. Standard Catch-up Contribution
- Participants age 50+ can contribute an additional $8,000 on top of the $24,500 deferral limit.
2. Enhanced Catch-up Contribution
- Participants turning age 60, 61, 62, or 63.
- Eligible participants age 50+ who earned $150,000 or more in FICA/W-2 wages in 2025.
(Includes Standard Catch-up, an increase of $3,250)
3. Roth Catch-up Contributions
- Participants age 50+ who earned $150,000 or more in FICA/W-2 wages in 2025.
(Sole Proprietors and Partners of a Partnership are not subject to mandatory Roth catch-up contributions.)
- Participants who qualify are required to make catch-up contributions to a Roth account.
Understanding the impact of these changes can help identify at-risk plans, initiate tax planning conversations, and give business owners a compelling reason to revisit retirement saving strategies.
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Trinity Pension Consultants