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Higher catch-up retirement contribution limits for employees nearing retirement

As of Jan. 1, the Secure 2.0 Act introduced enhanced catch-up contributions for individuals aged 60 – 63 and the CU voluntary retirement plan options have adopted this feature effective Jan. 1, 2025.   

This enhanced catch-up provision allows employees to contribute additional money to their age-50 catch-up contributions. For example, the 2025 catch-up contribution limit for those over 50 is $7,500, but if you are age 60 – 63, your limit increases to $11,250.  This increase applies to CU’s voluntary retirement plans: the CU 403(b), PERA 401(k) and PERA 457.

Age 2025 annual
contribution limit
2025 annual catch-up
contribution limits
2025 total annual limit
with catch-up
Under 50 $23,500 N/A $23,500
50 – 59  $23,500 $7,500 $31,000
60 – 63  $23,500 $11,250 $34,750
64 and over $23,500 $7,500 $31,000

 

The benefits of voluntary savings

The university offers three voluntary retirement accounts for eligible employees, and the newly adopted provision aims to assist employees in boosting their saving significantly during the years leading up to retirement eligibility. 

These increased contribution limits impact the voluntary accounts in different ways. Contribution limits for the 403(b) and 401(k) plans are cumulative, and the 401(k) plan is cumulative with the mandatory 401(a) plan.

The contribution limit for the PERA 457 plan is separate, meaning an employee could potentially double their retirement savings. Learn more about the university’s voluntary retirement plans and schedule a free consultation with TIAA.

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