Maximizing Your Retirement Savings: 401k and Retirement Plan Limits for Tax Year 2025

Posted on by

Table of Contents

2025 401(k) and IRA contribution limits: What you needโ€ฆ
As the new tax year approaches, it's essential to stay informed about the latest updates on 401k and retirement plan limits. The Internal Revenue Service (IRS) announces these limits annually, and for tax year 2025, there are some notable changes that can help you maximize your retirement savings. In this article, we'll delve into the details of the 401k and retirement plan limits for tax year 2025, providing you with the information you need to plan for a secure financial future.
2025 IRS Changes: Key Updates To Retirement, Tax, And Savings Limits
2025 IRS Limits Forecast โ€“ July

401k Contribution Limits for Tax Year 2025

401 K Limit For 2025 - Katya Melamie
The IRS has increased the 401k contribution limit for tax year 2025. The new limit is $22,500, up from $22,000 in 2024. This means that you can contribute up to $22,500 to your 401k plan in 2025, taking advantage of the tax benefits and compound interest that come with it. Additionally, if you're 50 or older, you can make catch-up contributions of up to $7,500, bringing your total contribution limit to $30,000.
Why you can save more than ever for retirement next year: IRS confirms ...
IRS announces 401(k) catch-up contributions for 2025 โ€“ NBC Los Angeles

Other Retirement Plan Limits for Tax Year 2025

The IRS Announces New 401k Plan Limits for 2023 โ€“ Sequoia
In addition to 401k plans, there are other retirement plans that have updated limits for tax year 2025. These include:
2025 401k Contribution Limits 2025 Irs - Maya Savannah
403(b) plans: The contribution limit for 403(b) plans is also $22,500, with a catch-up contribution limit of $7,500 for those 50 or older. Thrift Savings Plan: The contribution limit for the Thrift Savings Plan is $22,500, with a catch-up contribution limit of $7,500 for those 50 or older. IRA contributions: The contribution limit for traditional and Roth IRAs is $6,500, with a catch-up contribution limit of $1,000 for those 50 or older.
401 K Limits For 2024 Irs - Janel Linette

Highly Compensated Employee (HCE) Limits for Tax Year 2025

If you're a highly compensated employee (HCE), there are specific limits that apply to your retirement plan contributions. For tax year 2025, the HCE limit is $135,000, up from $130,000 in 2024. This means that if you earn above this threshold, you may be subject to certain restrictions on your retirement plan contributions.
401k 2025 Contribution Limit Chart 2025 - Coleent Hornton

Key Takeaways for Tax Year 2025

To summarize, the key takeaways for 401k and retirement plan limits in tax year 2025 are: 401k contribution limit: $22,500 Catch-up contribution limit: $7,500 for those 50 or older Other retirement plan limits: $22,500 for 403(b) plans and the Thrift Savings Plan, and $6,500 for IRA contributions HCE limit: $135,000 By understanding these limits and planning accordingly, you can maximize your retirement savings and set yourself up for long-term financial success. Remember to consult with a financial advisor or tax professional to ensure you're taking advantage of the retirement savings opportunities available to you.

For more information on 401k and retirement plan limits, visit the IRS website or consult with a financial advisor. Stay informed, and start planning for a secure financial future today!