Maximum Catch Up Contribution 2025. 2025 401k Contribution Limit Catch Up Over 50 Images References Waban Pearl Starting January 1, 2025, individuals ages 60 through 63 years old will be able to make catch-up contributions to eligible retirement plans of $11,250, in place of their normal $7,500 catch-up in 2025. The deferral limit is the greater of $5,000 or 150% of the normal "age 50" catch-up contribution limit for 2025 ($7,500)
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The Roth catch-up wage threshold for 2024, which under section 414(v)(7)(A) is used to determine whether an individual's catch-up contributions to an applicable employer plan (other than a plan described in section 408(k) or (p)) for 2025 must be designated Roth contributions, remains $145,000. Thus the 2025 "super" catch-up equals $11,250 (150% x $7,500)
2025 401k Contribution Limit Catch Up Over 50 Images References Waban Pearl
Starting January 1, 2025, individuals ages 60 through 63 years old will be able to make catch-up contributions to eligible retirement plans of $11,250, in place of their normal $7,500 catch-up in 2025. Thus the 2025 "super" catch-up equals $11,250 (150% x $7,500) On January 10, 2025, the IRS issued proposed regulations that provide guidance on numerus aspects of the new catch-up rules that will be effective in 2025 and 2026 including confirming that offering the higher catchup limit for employees ages 61 to 63 is optional
2025 401k Contribution Limit Catch Up Over 50 Images References Waban Pearl. SECURE 2.0 added an additional catch-up contribution to those 60 to 63 of $3,750. The catch-up contribution limit for Plan participants aged 50 or older remains at $7,500 for the 2025 tax year
2025 401k Catch Up Limit Johnny A. Woodward. Sixty- to 63-year-olds get a super contribution for the first time. The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401 (k), 403 (b), governmental 457 plans, and the federal government's Thrift Savings Plan remains $7,500 for 2025.