Retirement Plan Contribution Limits for 2025

Are you in your early sixties and hoping to make a splash with your retirement savings?

Good news! New legislation passed through the SECURE Act 2.0 has introduced an additional $11,250 catch-up contribution for those aged 60-63.

This “super catch-up” is part of a new tiered catch-up contribution for workers participating in a 401(k), 403(b), government 457 plan, or the federal government’s Thrift Savings Plan. This follows SECURE Act 2.0’s revised age for Required Minimum Distributions (RMD) and expanded access to 401(k) plans for part-time employees.

For those who are between ages 50-60, you are still eligible for a normal catch-up contribution of up to $7,500 to your workplace or 401(K) account in 2025.

For employees under age 50, the maximum annual contribution limit for employer and 401(k) plans has increased to $23,500, up from $23,000.

Within your Individual Retirement Accounts (IRAs), the contribution limit remains unchanged at $7,000, with an additional $1,000 catch-up contribution available for those over age 50.¹

The chart below outlines the 2025 limits. It’s worth mentioning that if you are over 60, you cannot make contributions for both “catch-up” amounts. Your maximum contribution will be limited to the base amount of $23,500 + $11,250 = $34,750.

Though the S&P 500 is up 1.4% through the end of February, it’s the broader “S&P 493” that is keeping the index afloat, while the Magnificent Seven have entered a selloff phase. This shift signals a potential market rotation, where leadership moves away from the largest tech names toward broader opportunities.

For those who are currently participating in workplace plans like a 401(k) or 403(b), this offers an opportunity to invest more into your current retirement strategy. Especially if you are looking to max out your plan limits, it may be a good idea to take another look at your contribution amounts in 2025.

(1)IRS, November 12, 2024