From Yahoo Finance: 2025-04-14 08:45:00

People over 50 can contribute an extra $7,500 per year to their 401(k) on top of the regular limit. The Secure 2.0 Act allows those 60-63 to contribute up to $11,250. This super catch-up contribution can help boost retirement savings and potentially lead to an extra $100 per month in your budget.

The higher contribution limit provides tax advantages for traditional 401(k) holders. For Roth 401(k) holders, the money can be withdrawn tax-free in retirement. The super-catch contributions can help build up Roth savings, especially for those nearing retirement. Consider what option works best for your budget.

Setting yourself up for retirement in your last working years is crucial. Super-catch contributions can help you focus on your retirement goals. Pre-retirees should treat their final working years as a dress rehearsal for retirement. Saving more now can prepare you for living on a lower income in retirement.

Read more: 3 Ways Super Catch-Up Contributions Can Help You Boost Your 401(k) and Retire Sooner