IRS Announces 401(k) Limit Changes for 2025

November 1, 2024

Highlights of changes for 2025

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan increases $500 up to $23,500.

The catch-up contribution limit for employees aged 50 and over who participate in these plans remains unchanged at $7,500 (as such, someone age 50+ can contribution up to $31,000 in 2025).  Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.

For a full listing of the IRS limits, click here.

Click here for more information (link to IRS website) »