The IRS recently posted the retirement plan contribution limits for 2025. Here is a table of the new limits as well as the limits from 32024 so you can see how much they have changed:
| 2025 | 2024 | |
| 401k, 403b, 457 plans | ||
| Employee Contributions: | $23,500 | $23,000 |
| Annual Contribution Limit (employer plus employee contributions) | $70,000 | $69,000 |
| Catch-Up Contributions | $7,500 | $7,500 |
| Age 60-63 Catch-Up Contributions | $11,250 | — |
| SIMPLE IRA/401k plans | ||
| Employee Contribution Limit | $16,500 | $16,000 |
| Catch-Up Contributions | $3,500 | $3,500 |
| Age 60-63 Catch-Up Contributions | $5,250 | — |
| IRA Contributions | $7,000 | $7,000 |
| Catch-Up IRA Contributions | $1,000 | $1,000 |
The changes are typical and not surprising except for a new catch-up amount that is allowed for those of us who reach the age of 60, 61, 62, or 63. It is called enhanced catch-up or super catch-up. Whatever you call it, it means you can put more money into your retirement plan in 2025.
For example, if you turn 60 in 2025 and participate in a 401k plan, you can contribute $23,500 plus $11,250 for a total of $34,750.
Please comment or send an email if you have any questions.
Joe Baker, CFP®
Baker Asset Management, LLC
joebaker@bakerassemanagement.com
