The 2025 retirement plan contribution limits have increased. Individuals can contribute up to $23,500 to their 401(k) plans, and those 50 and older can make additional catch-up contributions. For most 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plans, the catch-up contribution limit remains $7,500 for individuals aged 50-59 and 64+. However, those aged 60-63 are eligible for a higher catch-up contribution limit of $11,250 under the SECURE 2.0 Act. This means that in 2025, individuals aged 50-59 and 64+ can contribute up to $31,000 ($23,500 + $7,500), while those aged 60-63 can contribute up to $34,750 ($23,500 + $11,250)
Catch-up contributions offer a valuable opportunity for individuals aged 50 and above to boost their retirement savings. To qualify, you simply need to turn 50 during the calendar year. For those between 60-63, the SECURE 2.0 Act provides an even higher catch-up contribution limit, allowing for accelerated savings during peak earning years. This is particularly beneficial for individuals who may have started their careers later, didn't have access to a 401(k) plan earlier, or faced financial constraints in the past. By maximizing catch-up contributions, you can make significant strides in building a stable financial foundation for retirement, reducing financial stress and allowing you to enjoy your post-work life with greater peace of mind.
Planning for retirement is an ongoing process that requires strategic decision-making to ensure a comfortable financial position. At Broadleaf Partners, our team of wealth management advisors can help you optimize your retirement planning. We can assist with:
By working with our experienced advisors, you'll have access to the most up-to-date information and expert guidance to help you achieve your retirement goals. Whether it's investments, catch-up contributions, or overall retirement planning, we're here to support you every step of the way.
Ensure you are maximizing your retirement savings as you approach the end of your career with higher catch-up contributions to your workplace retirement plans. Broadleaf Partners can help you take full advantage of the contribution limit increase for 2025. Contact us today to set up an appointment with one of our knowledgeable wealth management advisors.