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403b vs 401k: Super Catch-Up Strategies for Age 60–63

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403b vs 401k - Time to Accelerate Retirement Savings

For individuals aged 60 to 63, the IRS has introduced a powerful opportunity to boost retirement savings: the super catch-up contribution. As of 2025, both 403b and 401k plans now allow an elevated $11,250 catch-up limit—a big increase from the standard $7,500.

This article compares 403b vs 401k strategies for maximizing these contributions and outlines how high earners nearing retirement can take full advantage.

What Are Super Catch-Up Contributions?

Super catch-up contributions are enhanced retirement savings limits available under SECURE Act 2.0, specifically for individuals aged 60, 61, 62, or 63. They go beyond the standard $7,500 catch-up for those over 50.

2025 Catch-Up Comparison:

  • Standard Catch-Up (Age 50+): $7,500
  • Super Catch-Up (Ages 60–63) : $11,250
  • Eligibility: Applies only to workplace retirement plans — 403b vs 401k

Feature

403bPlan

401k Plan

Common Participants

Public education, non-profits

Private sector employees

Investment Options

Often mutual funds, annuities

Broader range including ETFs

Fees

Often higher (unless low-fee provider)

Typically lower, more competitive

Catch-Up Contributions

Super catch-up + 15-year catch-up*

Super catch-up only

ERISA Protections

Not always (depends on employer)

Fully ERISA-regulated

403b participants with 15+ years of service may be eligible for an additional $3,000 per year up to $15,000 lifetime.

Why Super Catch-Up Rules Favor High Earners?

For high-income professionals nearing retirement, the ability to contribute $11,250 on top of the regular $23,500 (employee deferral) means:
  • $34,750 total elective deferral
  • Up to $76,500 total with employer contributions
  • Potential for even more if combining with cash balance plans
This makes super catch-ups an ideal strategy for late-stage wealth building, tax deferral, or Roth conversion planning.

Roth Requirement: Know Before You Contribute

Starting in 2025, all super catch-up contributions must be Roth if your wages exceed $145,000 in the prior year.

Implications:
  • No tax deduction now
  • Tax-free withdrawals in retirement
  • Strategic for those expecting higher future tax rates
Tip: If your income is below the threshold, you may choose traditional or Roth—based on tax timing preference.

403b Advantage: 15-Year Service Catch-Up

If you’ve worked at a non-profit or public school for 15+ years and still have unused contributions from previous years, you may qualify for an extra $3,000 per year, up to $15,000.

This is in addition to:

  • The standard catch-up

  • The super catch-up (if age 60–63)

Combining these can allow $45,000+ in deferrals in a single year—making 403b extremely powerful for long-tenured employees.

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Action Plan: How to Maximize Savings from Age 60–63?

  • Step 1: Confirm Eligibility
  • Age between 60 and 63 by year-end
  • Check if your plan supports super catch-up (most do)
  • Step 2: Review Roth Requirement
  • If prior-year wages > $145,000 → super catch-up must be Roth
  • Step 3: Adjust Payroll Contributions
  • Divide $11,250 across 12 months = ~$937.50/month
  • Update elections with your HR or plan portal
  • Step 4: Consider Plan Type
  • If in a 403(b), also check eligibility for 15-year catch-up
  • If in a 401k, explore pairing with a profit-sharing or SEP component

Future Planning: What Happens at Age 64?

After age 63, the super catch-up option ends, and you revert to the regular $7,500 catch-up limit.

Important: If you’re 63 in 2025, it’s your last chance to use the $11,250 limit.

This creates urgency for optimizing contributions now, especially if your employer offers a match or profit-sharing.
Staying updated is key to making the most of your retirement options.

Conclusion

The 403b vs 401k debate becomes especially relevant for savers aged 60–63, thanks to the new super catch-up contributions in 2025. Whether you’re in education, healthcare, or the private sector, this is your golden window to boost retirement savings while leveraging Roth benefits.

Talk to a retirement advisor today to calculate your max contribution strategy and ensure you’re not leaving any tax-advantaged dollars on the table.

Frequently Asked Questions (FAQs)

1. What is the super catch-up contribution limit for 2025?

$11,250 for individuals aged 60 to 63 in 403band 401k plans.

2. Does the super catch-up apply to IRAs?

No. It’s only for workplace retirement plans.

3. Can I make both standard and super catch-ups?

Super catch-up replaces the standard catch-up from ages 60 to 63.

4. Is the super catch-up Roth-only?

Yes—if your wages exceed $145,000 from the prior year.

5. Can I use the 15-year service catch-up and super catch-up together?

In a 403(b), yes—if you qualify.

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