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IRS raises 401(k) contribution limits, adds super catch-up for 60-63 year olds in 2025

Americans will be able to sock away more in their workplace retirement plans, before taxes, in 2025.

The IRS said on Friday it increased the annual employee deferral limit to $23,500, from $23,000 in 2024, for workplace plans, including 401(k)s, 403(b)s, governmental 457 plans and the federal government’s Thrift Savings Plan. Catch-up contributions for those participants aged 50 and up will remain at $7,500, which means their total contribution for 2025 is capped at $31,000.

In 2023, only 14% of employees maxed out their workplans, according to Vanguard’s How America Saves report. In plans offering catch-up contributions, 15% of participants 50 or older contributed more, it said.

Starting in 2025, employees aged 60 to 63 years old who participate in one of those work plans have a higher catch-up contribution limit. That cap is $11,250, instead of $7,500.

“Once you hit age 64, you are no longer eligible for a super catch-up contribution and are limited to the regular catch-up contribution amount,” said certified public accountant Richard Pon in San Francisco, California.

But remember, “right now, technically, there is no law that says that employers must offer a super catch-up contribution so I believe an employer’s retirement plan must be amended to specifically allow for a super catch-up contribution.”

What are the IRA limits in 2025?

The limit on annual contributions to an IRA remains $7,000. The IRA catch‑up contribution limit for individuals aged 50 also stayed at $1,000 for 2025, after a cost-of-living adjustment, the IRS said.

Did income ranges change for contributions to traditional and Roth IRAs?

Yes, the income ranges to determne eligibility to make deductible contributions to a traditional IRA, to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2025, the IRS said.

Here are the phase‑out ranges for 2025:

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