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To illustrate after-tax contributions, here's an example: Rachel is 45 years old, earns $100,000 and has a 401(k) account at work. She contributes $23,500 in 2025, the maximum for that year.

Learn how much you can save in your 401 (k) in 2025, including the annual limit of $23,500 and the catch-up limit of $11,250 for those 60 to 63. Find out how to make after-tax contributions and the difference between Roth and traditional 401 (k) plans.

Here are the 2025 limits that are most relevant to 401(k) plans: Annual Additions. The limit on annual additions (i.e., contributions) to 401(k) and other defined contribution plans will increase to $70,000 (up from $69,000). Code § 415(c)(1)(A). Compensation. The annual limit on compensation that can be taken into account for contributions ...

Explore this handy chart, which shows the 2025 benefits plan limits and thresholds for 401(k) plans, health savings accounts, flexible spending accounts, and more.

Employee 401(k) contributions: 2025: $23,500 (up $500 from 2024) The catch-up contribution limit for Plan participants aged 50 or older remains at $7,500 for the 2025 tax year. SECURE 2.0 added an additional catch-up contribution to those 60 to 63 of $3,750. Employer plus employee contributions: 2025: $70,000 (up $1,000 from 2024) 457(b) Plans ...

Highlights of changes for 2025. The annual contribution limit for employees who participate in 401k, 403b, governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $23,500, up from $23,000. The limit on annual contributions to an IRA remains $7,000.

Understand the Limits First. For 2025, here’s what the IRS allows: $23,000 employee contribution limit ... But your 401(k) allows $40,000 in after-tax contributions. You convert those to Roth—legally building tax-free retirement savings that would otherwise be off-limits.

The maximum retirement contribution limit for 401(k) plans just jumped to $70,000 for 2025. That's right - $70,000! Free Tools. ... You've got $23,500 to play with in your 401(k) for 2025. That's $500 more than last year to help build your dream retirement. ... This is the big leagues - up to $31,000 in after-tax 401(k) contributions rolled ...

2025 IRS updates to benefit contribution Limits & Thresholds. Each year, the IRS adjusts key tax thresholds and benefit limits to account for inflation, and 2025 is no exception The following table provides a side-by-side comparison of the 2025 IRS thresholds and limits versus those from 2024, highlighting updates that could impact your financial planning and tax strategies.

2025 Retirement Contribution Limits. If you’re saving for retirement, you’re ahead of the game—almost half of our fellow Americans had precisely zilch saved for retirement as of 2024. Yikes. 4. But there’s good news for savers. For 2025, the IRS increased the contribution limits for employer-sponsored retirement savings plans to $23,500.

IRS 401(k) limit 2025. Contribution limits for 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan will increase by $500 for 2025. Eligible taxpayers can contribute ...

For tax year 2025, employees can defer $23,500 into their 401(k) and IRAs, a modest increase from the $23,000 contribution limit in 2024. The change applies to 401(k)s, 403(b)s and the majority of ...

By knowing the new limits and potential tax benefits, you can better plan to achieve a secure retirement. Standard 401(k) Contribution Limits for 2025. The IRS has announced a new contribution limit of $23,500 for 401(k) plans in 2025, up from $22,500 in 2024. This limit applies to employee pre-tax contributions and Roth contributions.

For 2025, the employee contribution limit for a 401(k) is $23,500. There’s also a catch-up contribution of $7,500 for individuals aged 50 and over. ... Contributions to a Roth 401(k) are made with after-tax dollars, so you don’t get an immediate tax break. Instead, you pay the taxes in the current year, but the money can grow tax-free ...

2025 After-Tax 401(k) Contribution Limits: A Summary. For 2025, the maximum amount an employee can contribute to their 401(k) plan via after-tax contributions remains largely unchanged from 2024, reflecting the overall stability of these limits in recent years. The specific limit depends on factors such as the employee’s age and the overall ...

The contribution limits for 401(k)s, 403(b)s, IRAs, and HSAs will change for 2025. ... will increase from $345,000 in 2024 to $350,000 in 2025. This is always 5X the maximum 401(k) plan total contribution limit. ... My question is: if an individual caps out 73.5k from employer A, say in July (with 30k pretax/makeup, after-tax, and company match ...

In 2025, the total limit for 401(k) contributions for those aged 60 to 63 is $34,750. That number includes a $23,500 contribution limit and a catch-up contribution of $11,250.

Increases to 401(k) and IRA contributions for 2025 give you more options to boost your savings. ... 2025 contribution limit; 401(k), 403(b), most 457 plans, Thrift Savings Plan: $23,500: ... Because Roth IRA contributions are made with after-tax dollars, they aren’t deductible on your taxes. ...

Starting in 2025, the 401(k) catch-up contribution limit will remain at $7,500 for savers 50 and older. But investors aged 60 to 63 can instead save an extra $11,250, based on changes enacted via ...