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For the 2026 plan year, an employee who earns more than $160,000 in 2025 is an HCE. Source: IRS Notice 2024-80 View: IRS Raises 401(k) Contribution Limit for 2025

The Elective Deferral Limit is the maximum contribution that can be made on a pre-tax basis to a 401(k) or 403(b) plan (Internal Revenue Code section 402(g)(1)). Some still refer to this as the $7,000 limit (its original setting in 1987). The Annual Benefit Limit is the maximum annual benefit that can be paid to a participant (IRC section 415). The limit applied is actually the lessor of the ...

2025 Retirement Plan Contribution Limits 1. 401(k), 403(b), and 457(b) Plans. Employee Contributions: Up to $23,500 (under age 50) Catch-up contribution: $7,500 (ages 50+); higher catch-up ($11,250) for ages 60–63; Total Combined Limit (Employee + Employer): $70,000; Roth Options: Available for 401(k), sometimes for 403(b) and 457(b) Plan ...

Learn how much you can save in your 401 (k) each year and how the limits change over time. See the IRS guidelines for employee and employer contributions, catch-up contributions, and Roth 401 (k) contributions.

Learn how much you can save in your 401 (k) or IRA in 2025, based on your age, income, and employer match. Find out the new catch-up contribution rules for savers aged 60 to 63 and the limits for highly-compensated employees.

Find out the cost-of-living adjusted limitations for benefits and contributions under qualified retirement plans and IRAs for 2025. See the tables and definitions for elective deferrals, catch-up contributions, highly compensated employees, and more.

Find out the updated contribution limits for 401k, 403b, SIMPLE, SEP, and IRA plans in 2025. See the chart of select limits and the highlights of changes from the IRS Notice 2024-80.

The 401(k) catch-up contributions changed in 2025, with age now playing a factor.

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.

401(k) Plan Limits 2025 2024; Maximum elective deferral for employees: $23,500: $23,000: Total contribution limit for employer and employee: $70,000: $69,000: Catch-up contribution for employees ...

The 401k Contribution Limits for the year 2025 are expected to see many increases in different plans including elective deferral limit to $24,000, defined. ... The total maximum allowable contribution within the defined contribution plan will also be anticipated to rise almost $2000, making a total of $71,000 and In 2025, the catch-up ...

Until then, here are the limits for 2025 retirement plan contributions. 2025 401(k) and 403(b) Employee Contribution Limit. The total employee contribution limit to all 401(k) and 403(b) plans for those under 50 will be going up from $23,000 in 2024 to $23,500 in 2025. The catch-up contribution limit will stay the same at $7,500 in 2025, so if ...

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 ...

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 ...

The IRS has released the updated contribution limits for retirement plans in 2025. These changes apply to 401(k), IRA, SIMPLE IRA, and SEP IRA plans. The MAGI (Modified Adjusted Gross Income) phaseout ranges for IRA contributions will also increase in 2025. Key Changes for 2025 Retirement Plan Contribution Limits 401(k), 403(b), 457 Plans: The contribution limit will increase to $23,500, up ...

Learn how much employees can contribute to their retirement plans in 2025, including 401 (k), IRA, and SIMPLE IRA. Compare 2025 limits with 2024 limits using a quick-reference chart.

Here’s what you need to know for 2025. 401(k)s and 403(b)s. In 2025, you can defer up to $23,500 from your salary, with a total maximum contribution from all sources reaching $70,000, including employer matching and profit-sharing contributions. If you’re 50 or older, you can make an additional catch-up contribution of $7,500.

401(k), 403(b), Eligible 457s, and Thrift Savings Plan Contribution Limits Are Going Up Again in 2025. On November 1, the IRS announced 401(k) and IRA contribution limits for 2025. 1 For the second straight year, the contribution limits for 401(k)s, 403(b)s, eligible 457s, and Thrift Savings plans increased by $500 from $23,000 to $23,500.From 2022 to 2023, there was a $2,000 increase for ...

Starting in 2025, employees can contribute up to $23,500 into their 401(k) and 403(b) plans, most 457 plans, and the Thrift Savings Plan for federal employees, the IRS announced Nov. 1.