The Secure Act and Secure Act 2.0 legislation were recently passed into law, bringing with them several changes around retirement plans regarding funding and several other key topics.
One key part to remember is the four-year window for bonus catch-up contributions. People ages 60-63 can make a bonus catch-up contribution to their retirement plan, allowing them to save either an extra $10,000 in their 401(k) or 150% of the standard catch- up contribution of $7,500, whichever is greater of the two. Every year, starting in 2026, the $10,000 will be adjusted for inflation.
For example, currently a person 60 years of age can contribute $7,500, which is the standard catch-up in 2024. Starting in 2025, a person could contribute $11,250, the standard catch-up plus the bonus. They could contribute that same amount (indexed up) until age 63. Once they reach age 64, it will return to the standard catch-up amount. This allows roughly an extra $15,000 in contributions plus those yearly amounts being indexed for inflation.
To learn more, contact Weaver Capital Advisors today.
Written by: Patrick Norfleet
©2025
Advisory services offered through Sowell Management, a Registered Investment Advisor.