2025 Qualified Retirement Plan Contribution Limits
Maximizing your 401(k) contribution is a great way to save for retirement, lower your tax impact, and more. The IRS recently announced updated 401(k) contribution limits for 2025.
The maximum amount someone can contribute from their compensation to a qualified retirement plan during the year, through 401(k) or 403(b) traditional pre-tax and/or Roth after-tax contributions combined, has increased from $23,000 in 2024 to $23,500 in 2025.
In 2025, participants aged 50 and over can contribute an additional $7,500 in catch-up as in prior years, but with an optional “super” catch-up provision for employees aged 60 to 63.
“Super” catch-up applies to eligible plan participants who are between the ages of 60 and 63. The deferral limit is the greater of $5,000 or 150% of the normal “age 50” catch-up contribution limit. With the standard catch-up for 2025 coming in at $7,500, the 2025 super catch-up equals $11,250 (150% x $7,500).
There are a few things to watch for when administrating this provision:
Note that it is optional. While most third-party administrators (TPA) are defaulting to allow for these, you may have been given an opportunity to opt out. You’ll want to confirm with your TPA before proceeding with catch-up contributions above the $7,500.
If a participant turns 60 during any point in 2025 or thereafter, they are eligible to utilize the super catch-up for the full year.
If a participant turns 64 during any point in 2025 or thereafter, they are INELIGIBLE to utilize the super catch-up for the calendar year.
The amount listed above will be indexed annually, in the same manner that the deferral and regular catch-up limits are indexed.
The total combined contribution limit (including employer contributions, employee contributions, and forfeitures) has increased from $69,000 in 2024 to $70,000 in 2025.
The maximum amount of compensation that can be considered for contributions or forfeitures or nondiscrimination testing has increased from $345,000 in 2024 to $350,000 in 2025.
While the amount you can contribute to a 401(k) is limited, a 401(k) is part of an overall retirement plan that can include additional investment vehicles. Speak to your financial advisor to discuss how to best prepare for your unique goals.
