Participants who are 60, 61, 62, or 63 years old by the end of the calendar year can contribute up to $11,250, surpassing the standard $7,500 catch-up limit for those aged 50 and above. This allows for a total contribution of $34,750 to 457(b), 401(k), or 403(b) plans in 2025. This new provision, introduced by the SECURE 2.0 Act of 2022, became effective on January 1, 2025.

Participants who are 59 but will turn 60 within the calendar year are eligible for the special age-based catch-up. Participants turning 64 or older within the calendar year are only eligible for the 50+ catch-up.

457(b):
If you are within the three years prior to your plan’s Normal Retirement Age, you may be eligible to make a one-time election to defer additional money into your retirement plan.

403(b):
If you have 15 or more years of service at the same employer, you can contribute an additional $3,000 a year if you have not maxed out your 403(b) contributions in previous years. This 15-year service catch-up has a $15,000 lifetime limit.

The Saver's Tax Credit is a non-refundable income tax credit that could reduce your federal income tax liability to $0. It rewards low and moderate income taxpayers who are working hard and need more help saving for retirement. If you qualify, it gives you a federal income tax credit on your federal income tax return – just for investing for retirement through your IRA, 403(b), 457 and/or 401 plan.