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401(k) contribution limits for 2025 The 401(k) contribution limit for 2025 is $23,500 for employee salary deferrals, and $70,000 for the combined employee and employer contributions. If you're age 50 to 59 or 64 or older, you're eligible for an additional $7,500 in catch-up contributions.

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 contribution limits are $6,000 per employee and $1,000 in catch-up contributions for employees aged 50 and older in 2025. Employers are not allowed to contribute. 2025 will mark the second year of Starter 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). ... There are notable increases in the retirement plan contribution limits for 2025 compared to recent years, as well as ...

The Internal Revenue Service (IRS) announced 2025 retirement plan contribution limit adjustments. 401(k) and 403(b) Plans 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.

section 408(k) or (p)) for 2025 must be designated Roth contributions, remains $145,000. The limitation under section 408(p)(2)(E)(i)(III) that generally applies to salary reduction contributions under a SIMPLE retirement account or elective contributions under a SIMPLE 401(k) plan is increased from $16,000 to $16,500.

Employee 401(k) Contribution Limits For 2025. Employee contribution limits go up $500 more in 2025, to $23,500 from $23,000. In addition, catch-up contributions of $7,500 annually for those 50 and ...

2025 IRS Benefit contribution Limits & Thresholds. April 28, 2025 ... HSA contribution limit (employer + employee)an annual benefit and accrual limit: Self-only: $4,300 Family: $8,550: ... 401k. Defined Contribution Plans: 2025: 2024: Change: Maximum employee elective deferral (age 49 or younger)

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 you're 50+, your 401(k) employee contribution limit will be $31,000 in ...

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 IRS has announced new contribution limits for 401(k) plans in 2025. Employees can now defer up to $23,500 into workplace plans, a $500 increase from last year. The limit on annual contributions to an IRA remains at $7,000. Older workers have additional opportunities to boost their retirement savings.

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 contribution limit is anticipated to increase to $8,000, up from $7,500 in 2024 for the for employees aged 50 and older.

The 401(k) contribution limits for employer matches have also increased in 2025, raising the maximum contribution for you and your employer combined to $70,000. The employee and employer combined contribution limit for those 50 to 59 and 64 and older is $77,500.

The 401(k) contribution limit for employees in 2025 has increased to $23,500, up from $23,000 in 2024. The employer contribution limit also rises to $46,500, bringing the combined employee and employer 401(k) contribution limit to $70,000 for 2025. Don’t underestimate the power of employer 401(k) contributions, especially as you advance in your career.

Defined Contribution Plan Limits 2024 2025 Change; Maximum employee elective deferral: $23,000: $23,500 +$500: Employee catch-up contribution (if age 50 or older by year-end)*

401(k) Limits Increase for 2025. December 6, 2024. Employee Elective Deferral Contributions. Employees under the age of 50 who participate in 401(k) or 403(b) plans will be able to contribute up to $23,500 during 2025, which is an increase from the 2024 maximum of $23,000. The limit on catch-up contributions for people over 50 years old will ...

The 2025 401(k) contribution limit for employees—the same as 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan—is $23,500. Employees aged 50 and over can make an additional catch-up contribution of $7,500, bringing their contribution limit to $31,000.

SIMPLE IRA 2025 contribution limits: Employee contribution limit: $16,500 (up from $16,000 in 2024) Catch-up contribution (50+): $3,850; New for 2025, a super catch-up contribution for workers aged 60-63: $5,250; A Simplified Employee Pension (SEP) IRA lets an employer contribute funds to a traditional IRA on behalf of their employees. (This is ...

The Internal Revenue Service (IRS) increases the contribution limits for 401(k) retirement plans each year. In 2025, the IRS bumped up the maximum annual contribution limit by $500, allowing employees to defer up to $23,500 into workplace contribution plans, up from $23,000 in 2024.. Knowing the maximum amount you can contribute for the tax year 2025 can save you from paying taxes twice.