A colleague mentioned during lunch that he will turn 60 next year and asked how much more he can contribute to his 401k.

I only had a vague memory of the details, so that evening I looked up the numbers one by one. There were more confusing aspects than I expected, so I decided to summarize them.

The program commonly referred to as the super catch-up comes from the SECURE 2.0 Act. Starting in 2025, it allows workers aged 60 to 63 to contribute more than the standard catch-up limit.

Age is determined based on December 31 of that year. So if you have your 60th birthday this year, you qualify starting this year.

Conversely, in the year you turn 64, you revert back to the standard catch-up limit. Think of it as a four-year window.

First, let's look at the numbers for this year, 2026. The basic employee contribution limit is $24,500, which is an increase of $1,000 from last year's $23,500.

The standard catch-up for those aged 50 and over has increased from $7,500 to $8,000. So, those in their 50s can contribute a total of $32,500.

However, the super catch-up for ages 60 to 63 remains at $11,250, the same as last year. When added to the basic limit, that totals $35,750.

What was amusing is that while the standard catch-up increased, the super catch-up stayed the same. I expected both to move together.

The reason is that the super catch-up amount is designed to be adjusted separately from the standard catch-up for inflation. Therefore, even in a year when the standard catch-up increases, the super catch-up can remain unchanged.

Now, let's discuss the anticipated numbers for 2027. As of the time of writing, the IRS has not yet made an official announcement.

For reference, the 2026 limits were announced on November 13, 2025, and the 2025 limits were released on November 1, 2024. It seems likely that this year's announcement will come in early to mid-November.

Until then, projections from consulting firms will serve as the basis. Recent forecasts from Milliman and Marsh suggest that the basic limit will increase to $25,500, an increase of $1,000.

However, Milliman's forecast from March was $25,000. Depending on how the September inflation data is reflected, there could be a $500 difference.

The standard catch-up is expected to rise to $8,500. The super catch-up is projected to increase to $11,750, which is a $500 increase from this year, according to several sources.

If these projections hold true, those aged 60 to 63 will be able to contribute a total of $37,250, combining $25,500 with $11,750. Of course, this is just an estimate.

One more important thing to note is that the super catch-up is an option that must be adopted by the company plan to be available.

Just because the law allows it doesn't mean it automatically applies to all plans. It's best to check with HR or the plan administrator's website first.

Additionally, this limit applies not only to 401k plans but also to 403(b) and government 457(b) plans. Those working in schools, hospitals, or public institutions should use the same criteria.

There are also changes starting in 2026. Individuals whose prior year's FICA wages exceed a certain threshold must contribute their catch-up amounts to a Roth account.

This year, that threshold is $150,000 in FICA wages for 2025. Projections indicate it will rise to $155,000 in 2027.

The basis for this threshold is the Social Security taxable wages on the W-2 form. If you're unsure whether you qualify, you can check the relevant box on last year's W-2 for the answer.

Contributing to a Roth account means you won't receive a tax deduction now, but you won't pay taxes when you withdraw later. Those with higher incomes might feel like their taxes have increased immediately.

In Texas, there is no state income tax, so this calculation is somewhat simpler. You can compare whether to pay taxes now or later based solely on federal taxes.

Honestly, I found this aspect the most interesting. If you live in a state with income tax, you have to consider where you'll live after retirement as well.

Realistically, there may not be many homes where you can fully contribute $37,250. However, knowing there is a limit and being unable to contribute is different from not knowing at all.

If it were me, the first thing I would do is check whether our company plan includes the catch-up for ages 60 to 63.

Remember that company matching is calculated separately from the employee contribution limit. You should first contribute up to the matching limit and then add catch-up contributions on top of that.

Then, when the IRS announcement comes out in November, I will adjust my contribution rate starting with the first paycheck in January. You need to ensure you have enough left over at the end of the year to make a lump sum contribution.

Tax brackets and whether to convert to Roth depend on individual circumstances, so it's best to consult with a professional. Even if the numbers are the same, the right answer can vary from person to person.

In the end, I told that colleague to send an email to HR and let's have lunch again once the announcement comes out.