Tip of the Month | January 2025
2025 401(k) Plan Contribution Limits
Written By: Ryan Rink, CFP®, EA, ChFC®, CLTC®
The beginning of the year is a great time to review your retirement plan contributions. In 2025, individuals can contribute up to $23,500 to their 401(k). For those ages 50-59, an additional $7,500 catch-up contribution is allowed, bringing their maximum contribution amount to $31,000.
New in 2025, individuals ages 60-63 have an increased catch-up amount of $11,250 ($3,750 more than the standard $7,500 catch-up for those age 50+), bringing the maximum limit to $34,750. The higher catch-up contribution is reserved solely for participants ages 60-63, meaning someone who is 64 (or older) is NOT permitted to contribute that additional amount. That being said, someone age 64+ can still contribute the regular $23,500 plus the $7,500 catch-up, bringing their total contribution amount to $31,000 (the same as someone between 50-59). Please reach out to your Shakespeare advisor with any questions you may have.