For 2025, the IRS has announced several changes to contribution limits for retirement accounts, offering new opportunities for savers to maximize their retirement funds:

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401(k) Plans

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The 401(k) contribution limit increases to $23,500, up from $23,000 in 2024.

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The standard catch-up contribution limit for workers aged 50 and older remains at $7,500, allowing total contributions of $31,000 for this group.

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Under the SECURE 2.0 Act, workers aged 60-63 can make a "super catch-up" contribution of up to $11,250 instead of $7,500, increasing their total potential contributions to $34,750 during these specific ages.

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SIMPLE IRAs

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The SIMPLE IRA contribution limit rises to $16,500, up from $16,000 in 2024.

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The catch-up contribution limit for participants aged 50 and older stays at $3,500, but individuals aged 60-63 can make additional catch-up contributions of $5,250, boosting their total potential contribution to $21,750.

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These updated limits provide increased savings opportunities, especially for individuals nearing retirement age. We recommend that plan participants review their retirement contributions and take advantage of these new limits where possible to boost their retirement savings.

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