{"id":7206,"date":"2024-11-02T22:44:51","date_gmt":"2024-11-02T22:44:51","guid":{"rendered":"https:\/\/finderica.com\/401k-contribution-limits-for-2025\/"},"modified":"2024-11-02T22:44:51","modified_gmt":"2024-11-02T22:44:51","slug":"401k-contribution-limits-for-2025","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7206","title":{"rendered":"401(k) contribution limits for 2025"},"content":{"rendered":"
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The IRS has announced new 401(k) contribution limits for 2025.<\/p>\n

In its release Friday, the agency increased the employee deferral limit to $23,500, up from $23,000 in 2024. The change applies to workplace plans, including 401(k)s, 403(b)s and most 457 plans, along with the federal Thrift Savings Plan.\u00a0<\/p>\n

The IRS also unveiled 2025 catch-up contribution limits for savers age 50 and older, individual retirement account savings limits and higher income thresholds for Roth IRA contributions.\u00a0\u00a0<\/p>\n

More from Personal Finance: <\/strong>
IRS announces new federal income tax brackets for 2025
The IRS unveils higher capital gains tax brackets for 2025
IRS announces bigger estate and gift tax exemption for 2025<\/p>\n

Starting in 2025, the 401(k) catch-up contribution limit will remain at $7,500 for savers 50 and older. But investors aged 60 to 63 can instead save an extra $11,250, based on changes enacted via Secure 2.0. Both amounts are above the $23,500 deferral limit for 2025.\u00a0\u00a0<\/p>\n<\/div>\n

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In 2023, only 14% of employees deferred the maximum<\/a> amount into 401(k) plans, according to Vanguard’s 2024 How America Saves report, which included data from 1,500 qualified plans and nearly 5 million participants.<\/p>\n

Across plans, the average 401(k) deferral rate was an estimated 7.4% in 2023, according to the same report. The combined savings rate, including employer contributions, was 11.7%, Vanguard found.\u00a0\u00a0<\/p>\n<\/div>\n

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Pgiam | Istock | Getty Images The IRS has announced new 401(k) contribution limits for 2025. In its release Friday, the agency increased the employee deferral limit to $23,500, up from $23,000 in 2024. The change applies to workplace plans, including 401(k)s, 403(b)s and most 457 plans, along with the federal Thrift Savings Plan.\u00a0 The<\/p>\n","protected":false},"author":1,"featured_media":7207,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[706,1982,1438],"class_list":{"0":"post-7206","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-401k","9":"tag-contribution","10":"tag-limits"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7206"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7206\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/7207"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}