[PSA] ATTN: Those Aged 60-63 In 2025 Can Contribute More To Your IRA!

racecar | Oct 1, 2024 | 628 posts since 2014

For those who didn't know, or as a reminder for those who knew to plan ahead, starting in 2025, those who will be 60-63 anytime in 2025 will be able to contribute more to their IRA -- regardless if you have it through work, or just on your own -- your catchup contribution maximum will increase.

Even those who don't get an IRA through work and only have their own individual IRA (where 2024's limit is $7,000 + $1,000 more if you're over 55) that will increase to at least $10,000 total (possibly more) starting in 2025, if you'll be 60-63 anytime in 2025. Those who have IRA plans through work and other types of IRAs will have increases too if you're in that age bracket.

Google terms such as "Secure 2.0" "catch up" and "60-63" and you should come across the info you need.

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Rickny | Oct 1, 2024 | 1,296 posts since 2017

Change in 2026: If you're a higher-income employee age 50 or older looking to make "catch-up" contributions to employer-sponsored retirement plans, the SECURE 2.0 Act of 2022 had a surprise in store for you. Beginning in 2026, if your wages are higher than $145,0000, any catch-up contributions you make will have to be done after taxes to a designated Roth account, which means you won't get a tax deduction.

MY2CENTSWORTH | Oct 1, 2024 | 440 posts since 2016

Unless there has been a change that I am not aware of I believe that the 2024 IRA catchup contribution limit is for individuals 50 years of age and older and not 55 that is mentioned above.

racecar | Oct 1, 2024 | 628 posts since 2014

My2Cents, you're correct, my mistake, currently the catchup is for those 50 or older, not 55 as I wrote in the main post.

However the even higher amounts that will come into play starting 2025, will be for those who will be 60-63 anytime during 2025.

racecar | Oct 1, 2024 | 628 posts since 2014

CORRECTION: The current (2024) catchup is for those aged 50 or older (not 55 as stated in the main post), thanks MY2CENTS. DA doesn't let me edit the main post at this point.

However the even higher catchup amounts being allowed in 2025 will be for those aged 60-63 anytime in 2025. For those 50 but not yet 60 in 2025, I believe the catchup amounts will stay what they currently are.

MY2CENTSWORTH | Oct 2, 2024 | 440 posts since 2016

racecar, no worries but I did check it quickly after I wrote my comment in case I needed to delete or edit it, to make sure that I had not been misinforming my kids. It's sometime really difficult to keep up to date on any changes that take place and I even sometimes need to be sure I'm not confusing my own situation with that of my children and their children. I was not aware of the info that you provided, so thank you for that. It doesn't currently apply to anyone in my immediate family now, but it's always good information. I know when I was working 65-75 hour workweeks I didn't always have the time to spend on sites like this or searching out financial answers to keep abreast of the important moves to make to keep taxes to a minimum as well as keeping any money I was able to save working hard for me for my retirement. Now I have nothing but time so I'm now the family financial guru, so to speak for what it's worth. You know what people smarter than me have said before..."too old smart" or I wish I knew 30 years ago what I know today! Ain't life grand?

Ally6770 | Oct 2, 2024 | 4,307 posts since 2010

The total of your contributions and your employer's can't exceed the combined IRS limit. The 2024 combined limit for employee and employer contributions is $69,000 for those under 50 and $76,500 for those 50 and older.
Yes life is great. My husband used to say he would rather be 6'4" above the ground than 6' below it.

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