The IRS recently announced new contribution limits for retirement plans in 2025, offering a chance to save more for the future. Now is the perfect time to evaluate your savings strategy and make adjustments to take full advantage of these increased limits.
Key 2025 Retirement Contribution Limits
- 401(k) Employee Deferral Limit: Increased to $23,500, up from $23,000 in 2024.
- Catch-Up Contributions: For those aged 50 or older, the standard catch-up contribution remains at $7,500.
- Additional Catch-Up for Ages 60-63: Individuals in this age range can contribute up to $11,250 in catch-up contributions, raising their total contribution limit to $34,750.
Steps to Take Now
Adjust Your Savings Rate. Update your contributions before the new year begins to reflect the new limits and maximize your retirement savings potential throughout 2025.
Schedule a Retirement Plan "Checkup". Meet with your financial advisor to review your current retirement strategy, ensure you're on track, and explore ways to optimize tax savings.
Take Advantage of Employer Matches. If your employer offers matching contributions, ensure you’re contributing enough to receive the full match.
Don’t wait to start planning for 2025! Schedule a consultation with our office to adjust your retirement savings plan and ensure you’re making the most of the new contribution limits.