See below for a breakdown of 2024 vs 2025 401(k) limits, including catch-up contributions and salary thresholds. Defined Contribution Plan Limits 2024 2025 Difference Maximum employee contribution $23,000 $23,500 +$500 Catch-up contribution for employees ages 50+ $7,500 $7,500 +$0 Catch-up...
Starting in 2025, the 401(k) employee deferral limit will jump to $23,500, up from $23,000 in 2024. While catch-up contributions for workers age 50 and older will remain at $7,500, investors age 60 to 63 can save more, thanks to Secure 2.0. The higher catch-up contribution for w...
There's a requirement for catch-up contributions for those making over $145,000 to be made as Roth contributions starting in 2024, an interesting provision we'll talk a little bit more about later. It is mandatory, assuming that plan allows for catch-up. There's an increased catch-up ...
Contribution limits apply to the calendar year (and tax year). The following limits are for 2025. Type of Coverage2024 Full year contribution limit 2025 Full year contribution limit Individual $4,150 $4,300 Family $8,300 $8,550 Additional catch-up contributions for those 55+ $1,000 $1,...
The Senate bill is more generous with the 401(k) catch-up contribution of $10,000: It would apply to people age 60 or older. There also is no Senate provision changing the pre-tax treatment of catch-up contributions. The changes could make a big difference for people nearing retirement ...
In 2023, the catch-up is $7,500. Beginning in 2025, if you are between the ages of 60 through 63 your catch-up can be $10,000, and this will be indexed to rise with inflation.One important change to be aware of regarding catch-up contributions for anyone 50+: If you earned more...
Certain qualified retirement plans may, but do not have to, allow participants who are age 50 or older to make so-called "catch-up" contributions. The permissible catch-up contribution limit is generally $7,500 for 2023 (SIMPLE plans are limited to catch-up contributions of $3,500 for...
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Workers age 50 and older can make additionalcatch-up contributions. For both 2024 and 2025, the maximum catch-up contribution is $7,500 for most workers age 50 and older. In other words, a worker who is age 50 or older who earns at least $31,000 in 2025 is eligible to contribute th...
Some older workers may be eligible to make largercatch-up contributionsto their workplace retirement plans like 401(k)s and 403(b) thanks to new Secure 2.0 provisions,1 Workers who are ages 60, 61, 62, or 63 will be able to make catch-up contributions ofup to $11,250in ...