• For 2025, you can defer up to $23,500 into your 401(k), plus an extra $7,500 if you're age 50 and older for "catch-up contributions."
• That catch-up limit has jumped to $11,250 for workers age 60 to 63 in 2025.
• Some 97% of retirement plans have added the feature, according to Fidelity data.

If you're an older investor and for retirement, there's a for 2025 that could help boost your portfolio, experts say.

Americans expect they will need comfortably, and more than half expect to outlive their savings, according to a Northwestern Mutual survey, which polled more than 4,600 adults in January.

But starting this year, some older workers can leverage a 401(k) "super funding" opportunity to help them catch up, Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida, .

Here's what investors need to know about this new 401(k) feature for 2025.

Higher 'catch-up contributions'

For 2025, you can defer , plus an if you're age 50 and older, known as "catch-up contributions."

Thanks to , the 401(k) catch-up limit has for workers age 60 to 63 in 2025. That brings the max deferral limit to $34,750 for these investors.   

Here's the 2025 catch-up limit by age:

• 50-59: $7,500
• 60-63: $11,250
• 64-plus: $7,500

However, 3% of retirement plans haven't added the feature for 2025, according to Fidelity data. For those plans, catch-up contributions will automatically stop once deferrals reach $7,500, the company told C온라인카지노사이트.

Of course, many workers can't afford to max out 401(k) employee deferrals or make catch-up contributions, experts say.

For plans offering catch-up contributions, only in 2023, according to the latest data from Vanguard's How America Saves report.

'A great tool in the toolbox'

The higher 401(k) catch-up is "a great tool in the toolbox," especially for higher earners looking for a tax deduction, said Dan Galli, a CFP and owner of Daniel J. Galli & Associates in Norwell, Massachusetts. 

While pretax 401(k) contributions offer an up-front tax break, you'll owe regular income taxes on withdrawals, depending on your .

However, your eligibility for higher 401(k) catch-up contributions hinges what age you'll be on Dec. 31, Galli explained.

For example, if you're age 59 early in 2025 and turn 60 in December, you can make the catch-up, he said. Conversely, you can't make the contribution if you're 63 now and will be 64 by year-end.   

On top of 401(k) catch-up contributions, big savers could also consider , which is another lesser-known feature. But only 22% of employer plans offered the feature in 2023, according to the Vanguard report.