IR-2023-155, Aug. 25, 2023. WASHINGTON — Today, the Internal Revenue Service announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher‑income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions.
IR-2025-07, Jan. 10, 2025 — The Department of the Treasury and the Internal Revenue Service issued proposed regulations today addressing several SECURE 2.0 Act provisions relating to catch-up contributions, which are additional contributions under a 401(k) or similar workplace retirement plan that generally are allowed with respect to employees who are age 50 or older.
Catch-up contributions increased in 2025 for 401(k), 403(b), governmental plans, and IRA account holders for employees between the ages of 60 and 63. ... Individuals earning $145,000 or less, adjusted for inflation going forward, will be exempt from the Roth requirement. IRAs have a $1,000 catch-up contribution limit for people age 50 and over ...
For 2025, the max catch-up contribution is $11,250. 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 ...
Increased Catch-Up Contributions for Ages 60-63. Section 109 of SECURE 2.0 increases the catch-up limit for individuals aged 60-63 to the greater of $10,000 or 150% of the regular catch-up limit ($11,250 for 2025). Key details include: Age Range: The enhanced limit applies from the year an individual turns 60 until the year they turn 64.
Key changes to Roth 401(k) account rules may affect your tax planning and retirement savings. ... If you are 50-59 and 64 or older, the catch-up contribution limit for 2025 is an additional $7,500 ...
The Roth 401(k) contribution limit for 2025 is $23,500 for employee contributions and $70,000 for employee and employer contributions combined. There's also a $7,500 catch-up contribution for those age 50 to 59 and 64 or older, which raises the employee limit to $31,000 for those eligible.
For a traditional or Roth IRA, the annual catch-up amount in 2024 and 2025 is $1,000, which boosts your total contribution potential to IRAs to $8,000. If you participate in a 401(k) , Roth 401(k) , 403(b) , or similar workplace retirement savings plan, the catch-up opportunity is even greater: up to $7,500 a year.
Applicability Dates: January 1, 2025 for Super Catch-Up and January 1, 2026 for Roth Catch-Up. Under SECURE 2.0, the Roth catch-up rule was effective for taxable years beginning after December 31, 2023, while the super catch-up rule was effective for taxable years beginning after December 31, 2024.
Starting in 2025, employees aged 60 to 63 years old who participate in one of those work plans have a higher catch-up contribution limit. That cap is $11,250, instead of $7,500.
IRS Issues Guidance on Mandatory 401(k) Roth Catch-up Starting in 2026 Starting January 1, 2026, high-income earners will face a significant shift in retirement savings rules due to the new Mandatory Roth Catch-Up Contribution requirement. ... ($100,000), so when they look at Tim’s W-2 wages for purposes of the mandatory Roth catch-up in 2026 ...
Contribution limits: For the 2025 plan year, the pre-tax contribution limit into a 401(k) plan is $23,500, with a catch-up contribution limit of $7,500 for employees aged 50-59, and $11,250 for employees aged 60-63 (known as super catch-up contributions). Mandatory Roth contributions: The SECURE 2.0 provision mandating Roth catch-up ...
For 2025, the catch-up limit for this group is $11,250 instead of $7,500. ... Roth contributions or whether subsequent contributions will need to be on a Roth basis in order to satisfy the Roth ...
On January 10, 2025, the Treasury Department and the IRS issued proposed regulations providing guidance on the 401(k) catch-up contributions updated by SECURE 2.0. Significant changes include increased catch-up limits for those aged 60 to 63 and mandatory Roth contributions for high earners making more than $145,000.
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)
2025 401(k) limits unveiled: Standard limit rises to $23,500, plus special $11,250 catch-up for ages 60-63. ... The increased limits also apply to Roth 401(k) contributions, allowing savers to put away more after-tax dollars that can grow tax-free. ... The limit on annual contributions to an IRA will remain at $7,000 in 2025. The IRA catch-up ...
The Roth catch-up requirement was originally scheduled to become effective for taxable years beginning after December 31, 2023, but it was delayed until taxable years beginning after December 31, 2025. The regulations will permit a 401(k) or 403(b) plan to provide that a participant who is subject to the mandatory Roth catch-up requirement is ...
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