For many pre-retirees, those final years before retirement are when they look to save as much as possible.  It makes sense, you are generally in your highest earnings years, kids may be out of the house (finally), and you have the disposable income to save more.  The IRS has long allowed what is called ‘Catch Up Contributions’ once you reach the age of 50.  In 2024 that would mean you can contribute an extra $7,500/year to your Workplace Retirement plan, bringing the total contribution amount up to $30,500 allowed.

Starting in 2025, a unique additional contribution limit is being added.  A change brought forth in a 2022 tax law change is finally being implemented.  For lack of a better term, ‘Super Catch Up’ contributions, will allow workers who turn 60-63 during the year to contribute even more beyond the normal Catch Up contribution.  

This additional $3,750 is a welcome addition for many pre-retirees who feel they need to catch up and look for any way to stash these funds away.  While a small window, this does open many planning opportunities to boost retirement savings while lowering taxable income ever so slightly.