The Latest Rules on Retirement Plan Age 60-63 Catch-up Contributions. And office construction at Lucien, Stirling & Gray world headquarters

by - Mark Ward,

artist - Daisy Lopez

Catch up contribution update for 2025:

In today’s financial landscape, navigating the rules surrounding Retirement Plans can be daunting. Regulations are constantly evolving, so it’s essential to stay informed so you can make optimal decisions for your retirement planning.

What follows is a breakdown of the current rules regarding so-called “Catch up contributions” citing the latest information from the IRS for tax-year 2025.

For those of you who have access to a 401(k), 403(b), 457, or SARSEP plan through your place of employment, you may contribute up to $23,500 in payroll-deducted contributions no matter what age you are.

Additionally, if you are over the age of 50, or if you will turn 50 by the end of this year, you may contribute an extra $7,500 in “catch-up” contributions – for a total contribution of $31,000.

And now, starting in 2025, if at the end of this year you are, or will be, age 60-63, you may contribute an additional $3,750 beyond that, for a total contribution of $34,750.

However, once you reach age 64, the allowable catch-up contribution reverts to $7,500.

For those of you who have a SIMPLE Plan available at your place of employment, you may make up to $16,500 in payroll-deducted contributions, no matter your age. 

If you are over the age of 50, or if you turn 50 by the end of this year, you may contribute an additional $3,500, for a total contribution of $20,000

And now, starting in 2025, if you are age 60-63 you may contribute an extra $1,750 beyond that, for a total contribution limit of $21,750. 

However, once you reach age 64, the allowable catch-up contribution reverts to $3,500.

For the most current information, always refer to the IRS website IRS.gov, which offers comprehensive resources and updates on retirement plan rules and regulations. And please call us if you would like to have a more in-depth discussion of your personal situation.

LSG Office under construction

Starting soon, our office will be undergoing some construction. We expect that the work will move quickly, and that any disruption to our daily operations will be minor. But the last five years have taught us to be humble about those sorts of predictions, so we’re making you aware.

Like many businesses across the country, rapid adaptation to the COVID scare drove substantial changes at Lucien, Stirling & Gray. After going paperless, and since acquiring newer, smaller, more efficient technologies and cloud computing, one result is that we no longer need all the office space we originally negotiated in 2019.  So, we have recently renegotiated our lease and ceded back to the landlord about 30% of our original floor space. We kept the beautiful part!

During what we hope is a short few weeks as they extend a wall and add a new door, we ask your patience when you come in for a visit.  We will do our best to keep things as neat as usual, but it’s possible that we may have to contend with some noise, dust or workmen in the hallway.

As always, please reach out with any questions.  We are happy to help, and we would welcome a discussion about your unique situation.

Mark A. Ward

V.P., Operations & Chairman IPC