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Ask the Experts July 9, 2024
Who Is Eligible for Special Age 60-63 Catch-up Contributions?
Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations.
Reported by PS
Q: I just turned 63 years of age, and I am an active participant in my company’s 403(b) plan. Will I be able to qualify for next year’s special age 60-63 catch-up election?
Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:
A: Unfortunately, you will not. As described in a recent Ask the Experts column, this new optional provision, effective for the 2025 tax year, allows active participants aged 60 through 63 to contribute the greater of $10,000 or 150% of the 2024 catch-up contribution limit (indexed for 2025).
However, this provision only applies if you are older than 60 but have not turned age 64 before the end of the calendar year. Since you have already turned 63, you will be 64 as of December 31, 2025, and thus will not qualify for this catch-up election.
NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.
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