IRS Guidance on Super Catch-Up Provisions.

Starting in 2025, a new special catch-up contribution is permitted for taxpayers who are between ages 60 and 63.  That contribution limit will be equal to the greater of (1) $10,000 or (2) 150 percent of the standard catch up contribution limit for 2024.  With respect to the enhanced catch-up contribution limits, the IRS has now proposed regulations to confirm that plans do not violate the universal availability requirements simply by allowing participants between ages 60 and 63 to make the increased catch-up contributions.  The proposed regulations also confirm that the enhanced catch-up contribution option is entirely optional for employers.  Employers can elect to subject all employees to the typical catch-up contribution limits.  For more information on these enhanced catch-up contribution options, visit Tax Facts Online. Read More: Link to Q3761.  Note: Q is updated.