Older employees can save even more for retirement.

Section 109 of SECURE 2.0 was designed to help individuals who are nearing retirement age save more for retirement. If allowed by the plan, employees between the ages of 60 and 63, as of December 31st of that year, may be permitted to contribute more to their defined contribution [401(k), 403(b) and governmental 457(b)] plan.

How much more?

Beginning on Jan. 1, 2025, eligible participants will be able to make catch-up contributions equal to the greater of $10,000 (indexed for inflation) or 150% of the regular catch-up contribution limit.

What is the impact to plan documents?

The impact may be minimal if a plan document contains general language that permits participants to make catch-up contributions up to the IRS limits. If this is the case, the plan document would not likely require an amendment to implement this provision.

Corebridge Financial: Moving financial futures forward.

As these SECURE 2.0 provisions become effective, plan sponsors will have more flexibility in helping employees achieve personal and financial wellness. For more information about these and other SECURE 2.0 provisions, reach out to your Corebridge representative and visit our online hub. This new online resource breaks down and simplifies relevant provisions of SECURE 2.0. We will continue to update the hub with more relevant and timely content—so please visit often.