HUNTSVILLE, Ala. (WAFF) – If you’re behind on retirement savings, 2025 could be your year to catch up — in a big way.
Thanks to changes in federal law, certain workers will soon have access to expanded contribution limits in their workplace retirement plans like 401(k)s and 403(b)s. Financial expert Marshall Clay with The Welch Group says it’s a major opportunity for those looking to make up for lost time.
What’s Changing in 2025?
Under the new rules, contribution limits for company retirement plans are increasing:
- Standard Deferral Limit: $23,500
- Catch-Up Contribution for Age 50+: $7,500
- Super Catch-Up for Ages 60–63: $11,250
That means if you’re between 60 and 63 years old in 2025, you could contribute up to $34,750 to your retirement plan in a single year.
“Where existing catch-up provisions allowed those 50 or older to contribute more, the new 2025 limit now gives an even bigger boost to those aged 60 to 63,” said Marshall Clay.
“It’s a great opportunity to accelerate savings during your final working years.”
But there’s a catch. Not all plans will automatically offer the Super Catch-Up.
“There is a caveat — it’s plan-specific,” Clay said.
“You need to check with your employer or plan provider to confirm whether they offer it. In some cases, they may not even be aware of the change yet.”
Special Rule for 403(b) Plans
There’s also a lesser-known provision for long-term employees in 403(b) retirement plans, often used by educators and nonprofit workers.
If you’ve been in the same 403(b) plan for at least 15 years, you may qualify to contribute an extra $3,000 per year, up to a maximum of $15,000.
“This applies regardless of age,” Clay explained.
“So even if you started saving at 25 and have been in the same plan since, you could still be eligible — but only if you haven’t already contributed $75,000 or more over that 15-year period.”
Again, this rule is plan-specific, so you’ll need to ask your employer if your 403(b) plan qualifies.
Why It Matters
With inflation, market volatility, and rising living costs, many Americans struggle to feel financially secure heading into retirement. These new catch-up provisions could offer a lifeline.
“Markets are expected to be volatile due to the new administration and possible policy changes,” Clay said.
“But that also presents a buying opportunity for retirement savers. You may be able to invest at lower prices and make real progress toward your long-term financial goals.”
For more retirement savings advice or to connect with a financial advisor at The Welch Group, click here.
Click Here to Subscribe on YouTube: Watch the latest WAFF 48 news, sports & weather videos on our YouTube channel!
Copyright 2025 WAFF. All rights reserved.