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This applies to 401(k), 403(b), and governmental 457(b) plans that currently offer catch-up contributions. It’s also important to note that this change is optional for employers.

Contribution limits for 401(k) and other workplace retirement plans rise for 2025. Sixty- to 63-year-olds get a super contribution for the first time. ... In plans offering catch-up contributions ...

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)

401(k) contribution limits for 2024. The 401(k) contribution limit for 2024 is $23,000 for employee salary deferrals, and $69,000 for the combined employee and employer contributions. If you're age 50 or older, you're eligible for an additional $7,500 in catch-up contributions, raising your employee deferral limit to $30,500.

In non-safe harbor 401(k) plans, the IRS allows highly compensated employees (HCEs) to reclassify excess elective deferrals as catch-up contributions if needed to correct a failed ADP test. Starting in 2026, plans that fail ADP testing cannot reclassify excess deferrals as catch-up contribution for employees earning over $145,000 – unless the ...

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.

New Age 60 – 63 Catch-up: $3,750. 401K Age 60 – 63 Catch-up Contribution. Under the old rules, in 2025, a 401(k) plan participant age 60 – 63 would have been limited to the employee deferral limit of $23,500 plus the age 50+ catch-up of $7,500 for a total employee contribution of $31,000.

In 2025, the 401(k) catch-up contribution limit will remain $7,500 in 2024. However, investors age 60 to 63 can save $11,250 for catch-up contributions based on changes enacted via Secure 2.0.

Effective January 1, 2025, plan sponsors can opt to add a plan provision to allow participants who are between the ages of 60 and 63 at the end of 2025 (and subsequent years) to contribute an additional catch-up contribution…a super catch-up. For 401(k) and 403(b) plans, the super catch-up contribution is 150% of the regular catch-up ...

The 401(k) is getting a boost in 2025, and it is not just limited to higher standard contribution limits. The Internal Revenue Service (IRS) has also rolled out new catch-up contributions, giving older investors a chance to put more money toward retirement and make up for lost time.

Super Catch-Up Contributions for Ages 60-63. Starting this year, workers aged 60, 61, 62, or 63 by the end of the tax year can make a “super catch-up” contribution to their 401(k) or SIMPLE IRA. This allows eligible participants to contribute up to $11,250 annually, 150% of the regular $7,500 catch-up contribution limit for those over age 50.

The new catch-up contribution limit will increase to the greater of $5,000 or 150% of the regular age 50 catch-up contribution limit for SIMPLE IRA plans in 2025. Those who are 60, 61, 62, or 63 ...

The new contribution limit for 401(k)s and other workplace retirement plans in 2025 will be $23,500, up from $23,000 currently, the Internal Revenue Service said Friday.

Starting in 2025, older workers can save even more for retirement via 401(k) catch-up contributions. Here's what investors need to know.

However, beginning in 2026, if your income exceeds $145,000 (adjusted for inflation), your catch-up contributions must go into the Roth portion of your 401(k) plan. The Good and the Bad . The Good: Contributions to the Roth 401(k) grow tax-free, meaning that when you withdraw the funds in retirement, you won’t owe any taxes.

Here’s what’s new: For individuals who are still working and contributing to a 401(k) between the ages of 60 and 63, their catch-up contribution is $11,250 (for a total of $34,750). That’s an additional $3,750 in tax-deferred contributions. 2

401(k) contribution limits are up in 2025. On this episode of Fidelity's Money Unscripted, host Ally Donnelly looks at how you can save more for retirement. ... New 401(k) limits, catch-ups, and rules in 2025. You can now save more than ever before. Fidelity Money Unscripted

In 2025, workers under 50 can contribute up to $23,500 to a 401(k), whereas with an IRA, the limit is only $7,000. The catch-up contributions associated with 401(k)s are also higher.

In 2023, the 401(k) contribution limit is $22,500 and the catch-up contribution limit is $7,500. If you are 50 or older, you can defer paying income tax on $30,000 in your 401(k) plan.