On Friday, November 1, the IRS announced the retirement plan limits that will take effect on January 1, 2025. Most notably, the annual contribution limit for participants in 401(k), 403(b), and governmental 457 plans was increased to $23,500, up from $23,000. The catch-up contribution limit for those aged 50 and older is unchanged for 2025, at $7,500. The higher catch-up contribution limit, brought in by SECURE 2.0, for employees aged 60-63 is $11,250 instead of $7,500. These increases are more modest than prior years, but still impactful in employees' ability to save long-term.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
