[New Rule] 401k Boost for 60-63 Year Olds

A quick note from my desk. It applies to people who will be 60, 61, 62 or 63 THIS year. 

You get to contribute more money to your 401k!!!

Please do not ask me to explain WHY this only applies to people of this age, but that is how this new rule works. Also, you need to be this age by the end of the year.

The short version is, starting this year if you fall into this age bracket you can put away additional money into your 401k. Basically, the regular Catch-Up increases to $11,250. 

A deeper explanation:

• The maximum employee contribution to your 401k is capped at $23,500 for 2025.

• The regular Catch-Up for those at least 50 years old is an additional $7,500. 

• However, for those in the 60-63 bracket you can do a super-charged Catch-Up that is 150% of the regular Catch-Up. 

• The IRS has calculated this super-charged amount at $11,250.

If you are 50-59, the most you can put into your 401k is $31,000 (I am not including mega backdoor stuff).

If you will be between 60-63 starting this year, your maximum employee contribution is $34,750. 

I know this does not apply to everyone, but I wanted to share it because it is a substantive change, and not much has been said about it. 

P.S. If you’re turning 60–63 this year, this new 401k rule gives you a big opportunity — let’s talk about how to use it.