There’s a New Way to Supercharge Your Retirement Savings At Ages 60 to 63 by Allysa Labianco-Baldoquin, CPA
If you are between the ages of 60 and 63 in 2025 or later, there’s good news: you can give your retirement savings a significant boost, thanks to new changes in retirement contribution rules.
Historically, the tax laws cap the annual contribution limits to 401(k), 403(b) and other qualified retirement plans. They also provide additional means for individuals 50 and older to accelerate their savings contributions during their top-earning years as they get closer to retirement age. For 2025, the maximum pre-tax amount individuals may contribute to an employer’s plan is $23,500, plus $7,500 in catch-up contributions for those who have reached age 50. However, there are various reasons why individuals may fall behind in meeting their ultimate savings goals. Rather than risking financial instability, a new law allows savers to bolster their next nest eggs in the years right before retirement.
What Changes in 2025?
Starting in 2025, people ages 60 to 63 can contribute an additional $11,250 annually to their retirement savings plans on top of the regular limit. This gives you a four-year window to bolster your savings before retirement.
Here’s how it breaks down:
- Standard 401(k) contribution limit: $23,500
- Catch-up for age 50+: $7,500
- New catch-up for ages 60–63: $11,250
- At age 64 and up: The catch-up reverts to $7,500
These contributions not only help grow your retirement savings, but they also lower your taxable income in the years you make them. Your money grows tax-deferred until you start taking withdrawals in retirement.
How to Make the Most of It
To take advantage of this supercharged savings boost, it is a good idea to plan ahead. Review your budget and long-term goals to determine if you can make room to increase your contributions when the time comes. Even small adjustments to your current spending can have a big impact on your financial security in the future.
About the Author: Allysa Labianco-Baldoquin, CPA, is a senior manager of Tax Services with Berkowitz Pollack Brant, where she provides tax compliance and consulting services to closely held businesses, high-net-worth families and partnerships. She can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at info@bpbcpa.com or (954) 712-7000.
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