IRS Announces Contribution and Benefit Limits for Retirement Plans

*PlanConnect will be ready to support SECURE 2.0 Section 109 effective January 1, 2025. Section 109 increased Age 50+ Catch-up limits for participants who reach age 60-63 by December 31 each year.

Current law permits participants age 50 and over to contribute additional amounts above the regular contribution deferral limit, commonly referred to as the Age 50+ Catch-up contribution, if permitted by the plan. The limit on Age 50+ Catch-up contributions generally applies for all catch-up eligible participants. Section 109 change: This Enhanced or Super Catch-up contribution limit for eligible individuals in 403(b) and governmental 457(b) plans increased to the greater of:

• $10,000; or
• 150% of the regular age 50 catch-up contribution limit for such plans in 2025.

Based on the regular Age 50+ Catch-up Contribution limit for 2025 of $7,500, this amount is $11,250 for 2025.

Plans that adopted the PlanConnect SECURE 2.0 default provisions have agreed to permit this optional provision. If you have not yet returned your SECURE 2.0 checklist and want your employees to be able to take advantage of this change, please return the checklist by December 31, 2024. This will permit the change to be effective January 1, 2025.