Written By Jenny Kiffmeyer, J.D – The Retirement Learning Center
I have a client who participates in a 401(k) plan and was age 63 at the beginning of 2026. They turn 64 in a few months. Are they eligible to make an increased catch-up contribution under SECURE 2.0 for 2026?
Highlights of the discussion
The IRS’s final catch-up contributions regulations make clear that a participant may be eligible for the increased catch-up amount for a taxable year if they attain age 60, 61, 62, or 63 during the year [Treas. Regs. § 1.414(v)-1(c)(2)(i)(B)]. Therefore, a participant who was age 63 at the beginning of 2026 (and thus will attain age 64 during 2026) will not be eligible for the increased catch-up amount for 2026. The individual could still be eligible for the age-50 catch-up limit, however.
Section 109 of SECURE Act 2.0 amended the Internal Revenue Code to increase the 401(k) plan catch-up contribution limit to $11,250 for participants age 60-63, effective January 1, 2025. The IRS will make cost-of-living adjustments to the age-60-63 limit separately from the age-50 catch-up limit (currently $8,000). For example, the age-50 catch-up limit increased from $7,500 to $8,000 for 2026, but the age-60-63 catch-up limit remained at $11,250.
The increased age-60–63 catch-up contribution limit is optional and applies only if the plan permits it. Therefore, 401(k) plan sponsors who wish to permit the increased catch-up contribution limit must amend their plans by the SECURE 2.0 amendment deadline of December 31, 2026.
Conclusion
Plan permitting, the increased age-60-63 catch-up contribution limit applies to eligible participants who attain age 60, 61, 62, or 63 during the taxable year.
