If you’re 50 or older, you can contribute $6,500 to your 401(k) above the $20,500 federal maximum this year.
Instead of $6,500, people 60–63 could contribute $10,000 or 50% more than the catch-up amount in 2025, whichever is greater, under the retirement plan.
After December 31, 2024, the provision would apply.
However, a year earlier, everyone earning over $145,000 would have to “Rothify” their catch-up payments to help pay for the retirement package. Instead of making before-tax contributions up to the catch-up maximum, you might donate the same amount but be taxed on it the same year. Your donation would grow tax-free and be tax-free in retirement. The federal government would get tax income from the original catch-up contribution upfront.