Catch-up contributions via Roth for high earners – Under SECURE 2.0, high earners who are at least 50 years old and earned $145,000 or more in income during the previous year can make catch-up contributions to their Microsoft 401(k) account. However, these extra contributions must be made on a Roth basis, using after-tax money (even if their regular contributions - up to the 402k limit - are pre-tax). This means participants will pay taxes on their retirement savings during the years when they usually earn more, and they will also be able to withdraw the money tax-free in retirement.

Increased catch-up contributions for ages 60-63 – Under SECURE 2.0, individuals aged 60 to 63 by December 31, 2026, will be eligible for increased catch-up contributions in the Microsoft 401(k). This higher catch-up contribution limit for ages 60-63 is currently $10,000 or 150% of the standard age 50+ catch-up contribution limit, whichever is greater. For example, for 2025, the catch-up contribution limit for those age 60-63 is $11,250. This allows increased savings during key pre-retirement years which could help those participants who haven't been able to save as much earlier in their careers.