2025 Contribution Limit Updates for Retirement Plans
As we approach the new year, it’s important to stay informed about changes to retirement plan contribution limits. These updates impact how much employees can set aside for retirement and take advantage of tax benefits. Whether they participate in a 401(k), IRA, or other qualified plans, here are the key adjustments for 2025:
- 401(k) Savings Plan: The employee contribution limit has increased to $23,500, up from $23,000.
- Catch-Up Contributions for 401(k) Savings Plan: The catch-up contribution limit for employees aged 50 has increased to $7,500. This means participants aged 50 and older can contribute up to $31,000 total in 2025.
These updates provide an excellent opportunity to evaluate your retirement savings strategy and adjust contributions to take full advantage of these higher limits.
