Effective January 1, 2025, the IRS will again provide its catch-up limit provision for all participants over the age of 50 in addition to the contribution limit of a particular retirement plan. Notably this year, a new provision in SECURE 2.0 will be in place for those turning 60-63 by the end of the 2025 calendar year for certain retirement plans. These individuals will have the opportunity to contribute even more to their catch-up limit. This specific change will only apply to those turning 60-63 in 2025 and are enrolled in 457(b), 401(k), 403(b), or SIMPLE plans. This will not impact those with IRA/Roth IRA accounts.
See the below table for a summary of plan contributions for 2024 and 2025
Source: IRS
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The content is developed from sources believed to be providing accurate information.
Source: IRS
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