Employers that offer 401(k) plans and allow catch-up contributions need to prepare for some changes in 2025. The SECURE 2.0 Act allows 401(k) plan participants who will be 60, 61, 62 or 63 in 2025 to make annual catch-up contributions equal to $10,000 or 150% of the regular catch-up limit for the previous year, whichever amount is greater. So in 2025, eligible participants can opt to defer up to $11,250 from their paychecks (in addition to the standard 2025 contribution limit of $23,500). Update your organization’s plan documents and ensure you have employee birthdates so you’ll know when participants age into and out of the extra catch-up contribution period. Contact the Cg Team with questions.© 2024