Right before the holidays, the 2025 IRS limits were announced and thresholds for retirement plans – reflecting cost-of-living adjustments.
If you have a 401(k), there are some limits that are relevant to your retirement plans. In a separate announcement, the 2025 IRS announced dollar limits and thresholds for health and welfare plans.
The IRS generally sets higher limits annually on how much you – and your employer – can contribute to 401(k) plans. Here are the limits you need to know about.
Here are the 401(k) contribution limits for 2025:
What’s new in 2025 is a more generous catch-up contribution allowed for those ages 60 to 63. Also, contribution limits also rose overall.
Employee contribution limits will be increased $500 in 2025, to $23,500. Also, catch up contributions of $7,500 annually for those 50 and older are now available. Older than 50? The IRS for 2025 introduced a catch up amount of $11,250 (for those 60-63).
In 2025 – combined – employee and employer contributions to a 401(k) will increase $1000 to $70,000.
When you invest in your 401(k), you are investing in your future. There are tax advantages and your employer match is an excellent benefit.
No one wants to worry about money in retirement and knowing the max you can contribute annually can lead to more stress-free retirement.
That’s why it’s so important to review the IRS changes annually, not just the 2025 IRS limits – and take advantage of any updates like catch up contributions so you can meet (or even exceed) your retirement goals.
Do you still have questions? We can help you learn all about what you need to know about 2025 IRS limits — and more! Reach out today to learn more.
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If you have other questions about retirement plan loans, email us or call 937.308.0758.
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