If you are between the ages of 60 and 63, SECURE 2.0 gives you a limited window to make what the IRS calls a “super catch-up contribution” to your 401(k) or similar workplace retirement plan — up to $11,250 in additional savings on top of the standard limit in 2026. That means workers in this age bracket can potentially sock away $34,750 in a single year. Most people in this age group have no idea this rule exists, and missing it could mean leaving thousands of dollars in tax-advantaged growth on the table before you retire.

What exactly is the SECURE 2.0 catch-up contribution rule?

The original SECURE Act (passed in 2019) made several changes to retirement savings rules, and its 2022 sequel — SECURE 2.0 — went even further. One of the most underused changes is an enhanced catch-up contribution for workers aged 60, 61, 62, and 63.

Here is how the numbers work for 2026:

  • Standard 401(k) contribution limit: $23,500
  • Regular catch-up (age 50+): $7,500
  • Super catch-up (age 60–63 only): $11,250

So instead of contributing a maximum of $31,000 (the standard $23,500 plus the regular $7,500 catch-up), someone aged 60–63 can contribute up to $34,750 in 2026. This higher limit applies to 401(k), 403(b), governmental 457(b), and SIMPLE IRA plans, though the SIMPLE IRA numbers are slightly different.

Once you turn 64, you drop back to the standard $7,500 catch-up. The window is genuinely narrow — just four years — so if you are in that range right now, this is worth acting on quickly.

Why do so many near-retirees miss this rule?

The honest answer is that retirement plan administrators are not always great at flagging it, and many payroll systems were slow to update their contribution election screens after SECURE 2.0 passed. Your HR department may not even know the enhanced limit applies to you.

The fix is simple: contact your plan administrator directly and ask whether your plan has adopted the SECURE 2.0 super catch-up provision. Most large employers have, but smaller ones may have opted out. If your plan allows it, update your contribution election to reflect the higher limit before the calendar year ends — you cannot go back and make up missed contributions after December 31.

How does this interact with Social Security timing?

This is where the catch-up rule becomes even more powerful as part of a broader retirement strategy. One of the most common questions near-retirees ask is: when should I claim Social Security to maximise my benefit? The answer, for most people, is to wait as long as possible — ideally until age 70 — because your benefit grows by roughly 8% for every year you delay past your full retirement age (which is 67 for anyone born after 1960).

If you are currently 60–63 and still working, maxing out your super catch-up contributions now can help you build a larger retirement cushion, making it financially easier to delay Social Security and lock in that higher monthly benefit for life. Think of the two strategies as teammates.

How much of Social Security will be taxable once I retire?

This is another area where advance planning pays off. Up to 85% of your Social Security benefit can be subject to federal income tax, depending on your “combined income” (that is your adjusted gross income, plus any non-taxable interest, plus half of your Social Security benefit). If that combined figure exceeds $44,000 for a married couple filing jointly, up to 85% of your benefit is taxable.

Here is the important connection to your catch-up contributions: money you contribute to a traditional 401(k) now reduces your taxable income today, but withdrawals in retirement will count toward that combined income calculation. If your savings are large, you may want to consider splitting contributions between a traditional 401(k) and a Roth 401(k), if your employer offers one. Roth withdrawals do not count toward the Social Security tax calculation.

What are the RMD rules I need to know for 2025 and 2026?

Required minimum distributions — or RMDs — are the IRS-mandated withdrawals you must take from most retirement accounts once you reach a certain age. Under SECURE 2.0, that age was pushed to 73 for anyone who turns 73 in 2023 or later, and it is scheduled to move to 75 for those born in 1960 or after.

For 2025 and 2026, if you are already 73 or older, you must take your RMD by December 31 each year (with a one-time exception for your very first RMD, which can be delayed to April 1 of the following year — though doing so means two RMDs in one year). Missing an RMD triggers a 25% penalty on the amount you should have withdrawn, reduced to 10% if you correct it quickly. Mark your calendar and talk to your financial institution well before year-end.

How do I avoid Medicare IRMAA surcharges?

IRMAA stands for Income-Related Monthly Adjustment Amount — a surcharge added to your Medicare Part B and Part D premiums if your income exceeds certain thresholds. For 2025, the standard Medicare Part B premium is $185.00 per month, but higher earners can pay $259.00 to $628.90 per month depending on their income from two years prior.

Because Medicare uses your income from two years back (so 2026 premiums are based on your 2024 tax return), this is a planning issue you can actually get ahead of. Strategies to reduce IRMAA exposure include:

  • Maxing Roth contributions now to reduce future taxable withdrawals
  • Timing Roth conversions carefully to avoid income spikes
  • Appealing your IRMAA if you had a life-changing event (retirement, divorce, death of a spouse) that reduced your income — the SSA has a formal appeal process using Form SSA-44

The super catch-up contribution to a traditional 401(k) can actually help here too, by reducing your current-year adjusted gross income and potentially keeping you below an IRMAA threshold.

The bottom line on SECURE 2.0 catch-up contributions

The four-year window between ages 60 and 63 is one of the most generous tax-advantaged savings opportunities available to near-retirees, and the majority of eligible workers are not using it. Check with your plan administrator today, update your contribution election if the provision is available, and consider how it fits alongside your Social Security timing strategy, RMD planning, and Medicare cost management. Small moves made now compound in ways that matter enormously once the paychecks stop.

Frequently Asked Questions

Frequently Asked Questions

When should I claim Social Security to maximise my benefit?

For most people, delaying Social Security until age 70 produces the highest possible monthly benefit, because benefits grow by approximately 8% for each year you wait past your full retirement age of 67. If you are in good health and have other income or savings to draw on, waiting is usually the better financial move. Claiming early at 62 locks in a permanent reduction of up to 30%.

How much of Social Security is taxable?

Up to 85% of your Social Security benefit can be subject to federal income tax if your combined income — adjusted gross income plus non-taxable interest plus half your Social Security — exceeds $44,000 for married couples filing jointly or $34,000 for single filers. Below $32,000 (married) or $25,000 (single), benefits are generally not taxed at all. Roth account withdrawals do not count toward this combined income calculation.

What are the RMD rules for 2025 and 2026?

Under SECURE 2.0, required minimum distributions now begin at age 73 for most retirement accounts, and will shift to age 75 for those born in 1960 or later. RMDs must be taken by December 31 each year, with a one-time option to delay your very first RMD to April 1 of the following year. Missing an RMD results in a 25% penalty on the undistributed amount, reduced to 10% if corrected promptly.

How do I avoid Medicare IRMAA surcharges?

IRMAA surcharges are added to your Medicare Part B and Part D premiums when your income from two years prior exceeds certain thresholds. You can reduce exposure by using Roth accounts (whose withdrawals don’t count as income), timing large Roth conversions carefully, and appealing your IRMAA using Form SSA-44 if a life event like retirement has significantly reduced your income since the tax year Medicare is using.

What is the Medicare Part B premium for 2025?

The standard Medicare Part B premium for 2025 is $185.00 per month. Higher-income beneficiaries pay more due to IRMAA surcharges, with monthly premiums ranging from $259.00 up to $628.90 depending on income. Premiums are typically deducted directly from your Social Security benefit each month.