401K 2025 Contribution Limit IRS
While the IRS has not yet released the official 2025 contribution limits for 401(k) plans, here is some information based on expert projections and current trends:
Projected 401(k) Contribution Limits for 2025:
- Employee Contribution Limit: $23,500 (up from $23,000 in 2024)
- Catch-Up Contribution Limit (age 50 and over): $7,500 (likely to remain the same)
- Catch-Up Contribution Limit (ages 60-63): $11,250 (a significant increase due to SECURE 2.0)
- Total Contribution Limit (including employer match): $70,000 (up from $69,000 in 2024)
Key Factors Influencing the Limits:
- Inflation: Contribution limits are often adjusted for inflation based on the Consumer Price Index (CPI).
- SECURE 2.0 Act: This legislation introduces significant changes to retirement savings rules, including increased catch-up contributions for those aged 60-63.
Where to Find Official Information:
- IRS Website: The IRS typically announces official contribution limits for the upcoming year in late October or early November. Keep an eye on the IRS website (www.irs.gov) for the latest updates.
- Mercer Projections: Mercer, a human resources consulting firm, provides reliable projections of retirement plan limits based on their analysis of CPI trends. You can find their projections on their website.
Please note: It’s essential to confirm these figures with the official IRS announcement when it becomes available.
