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the same amount as 2024. Starting in 2025, the catch-up contribution for workers aged 60, 61, 62 or 63 is $11,250. The 401(k) contribution limits also apply to other so-called “defined ...

The 401 (k) contribution limit increased from $23,000 in 2024 to $23,500 in 2025. The catch-up contribution limit remained at $7,500 for 2024 and 2025. As of 2025, individuals ages 60 to 63 will be able to make even higher catch-up contributions in employer plans, equal to 150% of the catch-up contribution limit for individuals age 50 and older.

Catch-up contributions are designed to help people save extra money in tax-advantaged retirement accounts once they hit age 50. For many savers who are behind on their retirement savings goals, catch-up contributions represent a not-to-be-missed second chance at securing a more comfortable retirement.

Our Employee Benefits & Executive Compensation Group discusses what plan sponsors and fiduciaries need to know about the Internal Revenue

While the official IRS announcement will come later this year, the contribution limit for retirement accounts will likely increase from $23,500 to $24,500 in 2026, according to a new Milliman report.