Secure Act 2.0 is making a lot of welcome changes to retirement planning. One of the biggest updates impacts catch-up contributions. Catch-up contributions allow those 50 and over to make additional contributions to their 401(k) or IRA which exceed the standard contribution limit.

So what's new in the Secure Act 2.0 for catching up on retirement contributions? Starting in 2025, the amount allowed for anyone aged 60-65 will be increased from $7,500 to $10,000. Beginning in 2026, if your income exceeds $145,000, catch-up contributions must be made in a Roth account. This part of the provision was pushed out to 2026 to ensure enough time for orderly compliance.

This is good news for many who have fallen behind on retirement savings. According to one study, about half of Baby Boomers haven’t started saving for retirement and will depend primarily on Social Security benefits. How do you know if you’re saving enough for retirement? Check out this SmartPath video to learn more.