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2025 retirement plan contribution limits

One of the most basic principles of successful long-term investing is to invest as much as you can as soon as you can. For 2025, many of the retirement plan contribution limits have increased from their 2024 levels. Limits for 2025 include:

    • For participants under age 50, the maximum contribution to 401(k), 403(b), and 457(b) plans increased to $23,500. For participants age 50 to 59 and age 64 or older, catch-up contributions remain at $7,500. An important note: Beginning in 2025, those between ages 60 and 63 will be eligible to contribute up to $11,250 as a catch-up contribution.
    • For individuals under age 50, the maximum contribution to Traditional and Roth IRAs remains $7,000. For individuals age 50 and older, the additional catch-up to Traditional and Roth IRAs remains $1,000, for a total of $ 8,000.
    • If you’ve worked for a qualified organization, at least 15 years at the same organization you may be eligible to contribute up to an additional $3,000 to the 403(b) plan account.*
    • The maximum combined employee and employer contribution to 401(k) and 403(b) plans increased to $70,000.

Contribute as much as you can, as soon as you can

By investing as much as you can as soon as you can, you can take advantage of long-term compound growth. The hypothetical graph below illustrates how beginning to save as early as possible can make a significant impact on the size of your retirement nest egg.

graphic

Assumes $100 contributions made in 24 pay periods per year and 6% annual compound tax-deferred growth. Hypothetical example is for illustrative purposes only.

Maximizing your plan contributions

If you would like to identify some creative ways to save on your everyday expenses to help you maximize your plan contributions, we’re here to help.

* Up to a $ 15,000-lifetime limit. Other conditions apply.

This communication is not intended to be tax, legal, or accounting advice. Issues could exist that can affect the tax treatment of a transaction. Therefore, taxpayers should seek advice from an independent tax, legal, or accounting advisor before acting on any information presented. This information cannot be used to avoid tax penalties.