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Under current law, Internal Revenue Code (IRC) 414(v) permits solo 401k participants age 50 and over to contribute additional amounts above the IRC 402(g) regular employee contribution limit, commonly referred to as Age 50+ Catch-up contributions.
Based on the regular Age 50+ Catch-up Contribution limit for 2024, this solo 401k catch-up amount will be at least $11,250 in 2025 for solo 401k participant aged 60, 61, 62 and 63 by the end of the calendar year.
However, the solo 401k catch-up contribution limit remains at $7,500 for those age 50 or over. As a result, unless you are 60, 61,62 or 63 you won’t qualify for the newly increased catch-up limit found in section 109 of the SECURE 2.0.
It’s also important to note that the increased catch-up limit amount of $11,250 for solo 401k participants ages 60-63 will need to be discontinued and revert only to the standard age 50+ catch-up for the calendar year the participant will reach age 64 and beyond.
Example
