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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 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.

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 ...

401k. Defined Contribution Plans: 2025: 2024: Change: Maximum employee elective deferral (age 49 or younger) $23,500: $23,000: $500: Employee catch-up contribution (age 50 or older by year-end) $7,500: ... Defined contribution maximum limit, employee + employer (age 49 or younger) $70,00: $69,00

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 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 ...

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.

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.

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.

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. New in 2025, as a result of

This maximum 401K contribution article has been updated for the 2025 tax (calendar) year and contains historical data on prior years. The IRS has announced the 2025 maximum 401K contribution limit for employees, which is the max amount that employees can legally contribute to 401Ks in a given calendar year. The 2025 maximum 401K contribution limit will be $23,500, which is a an increase of ...

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.

contributions under a SIMPLE 401(k) plan is increased from $16,000 to $16,500. ... The amount under section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution ... Notice 2024-80, 2025 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of ...

The 401(k) plan is a primary retirement savings tool, and the IRS sets annual contribution limits. For 2025, the maximum contribution limit rises to $23,500, a $500 increase from the 2024 limit of $23,000. The catch-up contribution for individuals aged 50 and over remains at $7,500. Employees aged 60 to 63 can make a larger catch-up ...

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 IRS's contribution limit for 401(k) plans is higher in 2025, although the cap for IRAs is staying the same. ... Starting in 2025, employees aged 60 to 63 have a special "supersized" catch-up ...

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)*