The primary objective of SECURE 2.0 is to encourage more retirement savings. A notable provision can be found in section 109 of SECURE 2.0, which provides an opportunity for some savers to increase their contributions.
Starting in 2025, persons aged 60, 61, 62 and 63 (as of the last day of the calendar year) may contribute salary deferral catch-up contributions up to the greater of:
This is a limited window and a participant no longer qualifies for the increased limit upon reaching the year in which they turn 64. Once the participant ages out, they would revert to the regular catch-up limit for all participants age 50 or older ($7,500 in 2024, as indexed each year).
The chart below highlights examples of how this change would impact participants based on birth year.
| Birth Year | 2025 | 2026 | 2027 |
|---|---|---|---|
| 1961 | 7,500 (age 64) | 7,500 (age 65) | 7,500 (age 66) |
| 1962 | 11,250 (age 63) | 7,500 (age 64) | 7,500 (age 65) |
| 1963 | 11,250 (age 62) | 11,250 (age 63) | 7,500 (age 64) |
| 1964 | 11,250 (age 61) | 11,250 (age 62) | 11,250 (age 63) |
| 1965 | 11,250 (age 60) | 11,250 (age 61) | 11,250 (age 62) |
| 1966 | 7,500 (age 59) | 11,250 (age 60) | 11,250 (age 61) |
| 1967 | 7,500 (age 58) | 7,500 (age 59) | 11,250 (age 60) |
*Dollar amounts are for representation only, actual catch-up amounts are subject to cost of living adjustments each year.
Employers will need to coordinate with their payroll providers or internal payroll teams to ensure they are prepared to support this update.
For current clients, Sentinel intends to add this new feature automatically and is updating its recordkeeping systems to support the higher catch-up limits. Stay tuned for further details and announcements directly from your Sentinel team.
Contact your Sentinel representative to learn more about how Sentinel can help you navigate this and other changes to retirement plans under SECURE 2.0. We are here to help find solutions that seamlessly align with your organization’s needs and goals.
This website uses cookies. By accepting the use of cookies, this message will close and you will receive the optimal website experience. For more information on our cookie policy, please visit our Privacy Policy.
