In 2025, the IRS has set the following catch-up contribution limits for retirement accounts:
- 401(k), 403(b), and governmental 457 plans:
- Standard contribution limit: $23,500.
- Catch-up contribution for individuals aged 50 and over: an additional $7,500, allowing a total contribution of up to $31,000.
- Enhanced catch-up contribution for individuals aged 60 to 63: an additional $11,250, permitting a total contribution of up to $34,750.
- Traditional and Roth IRAs:
- Contribution limit: $7,000.
- Catch-up contribution for individuals aged 50 and over: an additional $1,000, totaling $8,000.
These increased limits offer significant benefits:
- Accelerated Savings: Individuals aged 50 and above can substantially boost their retirement funds, especially those aged 60 to 63 who have higher catch-up limits.
- Tax Advantages: Contributions to traditional accounts may reduce taxable income, while Roth account contributions grow tax-free, providing flexibility in tax planning.
- Retirement Readiness: Higher contribution limits enable individuals to better prepare for retirement, potentially enhancing financial security in later years.
| 2025 Contribution Limits for 401(k), 403(b), and governmental 457 plans | |||||
| Age | Pretax and Roth employee contributions | Catch-up contributions | Maximum employee contribution | Maximum Employee + employer contribution | Maximum Employee + employer + catch-up |
| Under Age 50 in 2025 | $23,500 | $0 | $23,500 | $70,000 | $70,000 |
| Ages 50-59 or 64+ in 2025 | $23,500 | $7,500 | $31,000 | $70,000 | $77,500 |
| Ages 60-63 in 2025 | $23,500 | $11,250 | $34,750 | $70,000 | $81,250 |
It’s important to note that starting in 2026, individuals earning more than $145,000 will be required to make catch-up contributions to Roth accounts, which are funded with after-tax dollars.
If you have questions on your contribution amounts, schedule a portfolio review today.