Late last year, Congress passed a host of new retirement plan rules, known as the SECURE Act 2.0. The most publicized change was raising the age when you must begin taking Required Minimum Distributions (RMDs) from your retirement plan and taxable IRAs from 72 to 73 beginning this year, and to age 75 beginning January 1, 2033.

The law also made two important changes to the rules for making 401(k) plan salary deferrals. Currently, you and your spouse can make tax-deductible salary deferrals of up to $22,500. If you’re 50 or older, you can add an additional tax-deductible catch-up deferral of $7,500 per spouse, for a maximum salary deferral of $30,000 per spouse annually.

The new law increases these catch-up contributions to $11,250 per year for those age 60 to 63, beginning in 2025. However, to raise revenue, the new law requires that, beginning in 2024, all catch-up contributions must be made using after-tax funds into Roth 401(k) accounts for those earning