If you’ve been following along here on the blog, the SECURE 2.0 Act probably sounds familiar. We’ve explored some of its provisions and the ways they stand to change retirement planning for the better.

Though some of the Act’s provisions were enacted immediately upon its passing in 2022, others are being introduced progressively—and this year, the American workforce receives the benefit of an especially nice one.

As of January 1, 2025, those who are aged 60-63 as of the last day of 2024 are eligible for an additional “super catch-up” contribution to their workplace retirement accounts, like 401(k)s or 403(b)s. This year, eligible savers can contribute an additional $11,250 to their employer-sponsored accounts, for an overall contribution cap of $34,750.

While this enhanced contribution limit’s immediate benefits are obvious for early-60s savers, there are ways to super-super-charge these super catch-ups. Read on for the insider details that can make all the difference in maximizing your hard-earned retirement.

Consider Making Both Pre- and Post-Tax Contributions

When it comes to paying taxes on retirement funds, the question isn’t if, it’s when. And since the equation basically comes down to a gamble about when your tax bracket will be lower, it’s worthwhile to seriously consider making both pre- and post-tax contributions.

If you project that your tax rate will be higher in retirement—perhaps due to required minimum distributions (RMDs), loss of tax benefits (think mortgage interest deductions or dependent care credits), or additional income from inherited accounts—making some post-tax contributions can be wise. On the other hand, if you expect your bracket to downgrade in retirement, making pre-tax contributions often makes more sense, since it lowers your overall tax bill.

The good news is, with the additional leverage of the super catch-up, you have more “room,” so to speak, to make some of each type of contribution.

Of course, no matter what you do, you’ll likely want to ensure you’ll receive your company’s match if they offer one—so be sure to read your benefit package’s fine print. Working with a financial planner can also be a big help when it comes to determining the optimal balance for your specific situation and ensuring your retirement strategy aligns with your unique goals.

Remember: Timing is Everything

While making contributions is almost always a good thing, when you make them can also make a big difference. If your salary and cash flow permit, making larger contributions at the start of the calendar year can mean more overall growth, since your funds will have the rest of the year to generate returns.

But making a big contribution up front isn’t always feasible, especially after the expensive winter holidays. Fortunately, there’s an alternative (which is actually the most common) route among retirement savers: strategically planning your periodic contributions across your retirement accounts.

Generally, you should start with your workplace retirement plan (especially if there’s a match) and then move onto your IRA— either traditional or Roth, based on your expected tax rate in retirement, as we discussed above. (If you expect to retire early or need to plan for emergencies, the Roth IRA is a better option since you won’t see a tax hit on your contributions upon withdrawal.)

Lastly, you may want to consider contributing to your health savings account (HSA) if you’re enrolled in a high-deductible health insurance plan (HDHP). Doing so creates a vital safety net for medical expenses, offering tax-incentivized coverage for many costs including Medicare and long-term care premiums (subject to limits).

As you can see, the super catch-up has the potential to significantly boost your retirement savings while also complementing the timing and nature of contributions to your retirement accounts.

During your glory years, playing catch-up can be an essential strategy to help secure a comfortable retirement. At Felton & Peel, we’re dedicated to guiding you through the complexities of the retirement planning process, offering the expertise and personalized support you need to achieve your retirement goals confidently. We’re here to help—and your first consultation is on us.