IRS Announces Higher 401k Limits And New CatchUp For 2025

401k Catch Up Limits 2025. IRS Announces Higher 401k Limits And New CatchUp For 2025 That means anyone who meets the age requirements can contribute a total of $31,000 to their workplace retirement plan. If you're age 50 to 59 or 64 or older, you're eligible for an additional $7,500 in catch-up contributions.

While the increase for employees under the age of 50 is modest, there's an expanded catch-up contribution limit for those. Employee contributions: $23,500, plus $7,500 catch-up (ages 50+); $11,250 catch-up for ages 60-63; Employer contributions: up to 25% of compensation; Total combined limit: $70,000 or 25% of compensation, whichever is less; SEP IRA.

401(k) limits, 'super catchup' contributions, increase in 2025 CPA Advisory Group

Employee contributions: $23,500, plus $7,500 catch-up (ages 50+); $11,250 catch-up for ages 60-63; Employer contributions: up to 25% of compensation; Total combined limit: $70,000 or 25% of compensation, whichever is less; SEP IRA. The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b. For employees aged 50 and older with a 401(k), the catch-up contribution limit will stay at $7,500 in 2025, the same as in 2024.

2025 401k Limits Catch Up Tadi Star. For 2025, the standard catch-up contribution limit for 401(k) plans is $7,500 Solo 401(k): For self-employed individuals/business owners without employees

Irs 401k Catch Up Contribution Limits 2025 Dawn R Henderson. For those with employer-sponsored retirement plans, such as 401(k), 403(b), and most 457 plans, the new contribution limit for 2025 is $23,500, up from $23,000 in 2024 If you're age 50 or older , you can take advantage of catch-up contributions , which allow you to contribute an additional $7,500 , bringing the total limit to $31,000 for the year.