Defined Contribution Plans 2025 2024 Change; Maximum employee elective deferral (age 49 or younger) (1) $23,500: $23,000 +$500: Employee catch-up contribution (age 50 or older by year-end) (2)
Find out the latest IRS limits for 401 (k) and other retirement accounts in 2025. Learn how inflation, Secure Act 2.0, and age factors affect your contribution amounts.
Find out the updated limits for 401 (k), 403 (b), 457 (b), IRA and other retirement plans in 2025. The catch-up contribution limit for 50+ participants remains at $7,500, while SECURE 2.0 adds an extra $3,750 for 60-63 age group.
For 2025, the IRS increased the contribution limits for employer-sponsored retirement savings plans to $23,500. That means you can invest even more for retirement through retirement plans offered at your job—like the 401(k), 403(b) and Thrift Savings Plan (TSP)! If you’re 50 years old or over, you can add another $7,500 as a catch-up ...
401k and Retirement Plan Limits for the Tax Year 2025. On November 1, 2024, the Internal Revenue Service announced that the amount individuals can contribute to their 401k plans in 2025 has increased to $23,500, up from $23,000 for 2024. ... The IRA catch-up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 ...
Learn how the 401k contribution limits for 2025 may change based on inflation and other factors. Find out the expected amounts for elective deferral, defined contribution, catch-up and age 60-63 limits.
2025 401(k) and IRA contribution limits: This year, 401(k) participants can contribute up to $23,500. This is an increase from last year’s $23,000. For individuals contributing to an IRA, the contribution amount remains at $7,000. 2025 catch-up contribution limits: The catch-up contribution limit for 401(k) participants aged 50 and over ...
For 2025, the standard 401(k) contribution limit increased to $23,500, up $500 from the 2024 limit of $23,000. This adjustment applies to 401(k) plans, as well as 403(b) plans, most 457 plans and the federal government's Thrift Savings Plan. While this may seem like a modest increase, it represents a continued trend of annual adjustments aimed ...
The 401(k) catch-up contributions changed in 2025, with age now playing a factor.
The 2025 401(k) contribution limit increased to $23,500, up from $23,000 in 2024. Employees age 50 and older can contribute an additional $7,500 for a total of $31,000. Workers ages 60 to 63 have ...
There's a higher catch-up contribution limit for some older investors in 2025. Here's who qualifies for the change.
As of 2025, that limit is $7,000 per year, with an additional $1,000 per year in catch-up contributions allowed for those aged 50 and over. Roth 401(k)s share the same limit as all 401(k) accounts. As of 2025, that’s $23,500 per year, plus $7,500 in catch up contributions for those aged 50 to 59, and up to $11,500 in catch-up contributions ...
Starting January 1, 2025, plans may offer a higher dollar catch-up limit to employees who would attain exact ages 60, 61, 62, or 63 by the end of the year. For those participants, the limit is 150% of the regular dollar catch-up limit. For 2025, the catch-up limit for this group is $11,250 instead of $7,500.
The annual employee contribution (also called elective deferral) limit for 401(k), 403(b), 457 and TSP plans is up $500 from $23,000 in 2024 to $23,500 for 2025. For employees aged 50 and over, the catch-up contribution remains unchanged at $7,500 for a total annual contribution limit of $31,000 for 2025.
Learn about the new catch-up contribution limits for 401 (k)s for people aged 60 to 63 and other changes to retirement plans in 2025. Find out how to save more for retirement and avoid penalties with Kiplinger's expert advice.
