--- title: Contribution Limits for 401(k)s Will Have a 'Super' Twist Next Year description: People ages 60 to 63 will be able to make extra catch-up contributions to their 401(k)s thanks to the SECURE 2.0 Act. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 600 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: A graduate of the University of Florida, Julia has more than eight years of experience in personal finance journalism. In addition to overseeing news and newsletters, she leads Money’s tax coverage, which includes extensive reporting on tax credits, policy changes and the IRS. education: University of Florida at_money_since: 2018 articles: 453 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2024-11-01T19:41:51.000Z' modified: '2025-01-13T20:24:59.000Z' section: Taxes tags: - News word_count: 387 canonical: https://money.com/401k-contribution-limits-2025-irs/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo-collage of a hand reaching down with money to a briefcase full of money.](https://img.money.com/2024/11/News-401k-Contributions-2025.jpg) Powered by: ![](https://s3.consumersadvocate.org/prd/image/image/25353/2b0c46d2-8a19-4d53-a713-9b8ee77e9901.png) A reverse mortgage can be an important part of your retirement plan – use your home's equity as a steady stream of cash flow to give you financial flexibility. Let Longbridge Financial show you how. [Go to Longbridge-Financial.com](https://money.com/pr/pc494df450d7?ap_referrer=%2F401k-contribution-limits-2025-irs%2F) If you max out your [401(k)](https://money.com/401k-and-401k-rollover/) retirement account or you're thinking about starting, here's some good news: The contribution limit will increase by $500 next year. In 2025, you will be able to put $23,500 in your 401(k), not including any match from your employer, the IRS [announced](https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000) Friday. Adults ages 50 to 59 can also make "catch-up" 401(k) contributions of up to $7,500, which means their total contribution limit will be $31,000 next year. Starting next year, people ages 60 to 63 will be able to make extra *extra* contributions to their 401(k)s for the first time ever thanks to the SECURE 2.0 Act. Their "super" catch-up contribution limit is $11,250, meaning they can max out 401(k)s with $34,750 in 2025. The *[Wall Street Journal](https://www.wsj.com/personal-finance/retirement/401k-retirement-account-catch-up-limit-2025-5ed60a7b)* is calling this "the biggest change to 401(k) contribution rules in two decades." ## 401(k) contribution limit for 2025 A 401(k) is an employer-sponsored plan that allows workers to allocate a portion of their income to a tax-advantaged account. You contribute pre-tax dollars, which reduces your taxable income for that year, and you typically don't pay any taxes until you access the funds in retirement. This tax deferment is typically beneficial because there's a good chance you'll be in a lower [tax bracket](https://money.com/new-tax-brackets-2025/) when you stop working. This year, the limit is $23,000, and there's still time to potentially make a plan to hit that max, as the contribution deadline is Dec. 31. Why is the IRS increasing the 401(k) contribution limit for 2025? It's just an adjustment to account for inflation. Contribution limit increases are enacted on an annual basis, when necessary. In addition to 401(k)s, the $23,500 annual limit will also apply to 403(b)s, most 457 plans and the federal government’s Thrift Savings Plan. ## IRA contribution limit for 2025 The $7,000 [individual retirement account (IRA)](https://money.com/what-is-an-ira/) limit will not change in 2025 because inflation was not high enough to warrant it. People 50 and older can also make catch-up IRA contributions, and the limit will remain at $1,000. However, the income caps to be eligible to make tax-deductible IRA contributions and to contribute to a [Roth IRA](https://money.com/what-is-a-roth-ira/) will increase for 2025. ## Longbridge Can Help Improve Your Cash Flow… And Your Peace of Mind. ### Longbridge offers reverse mortgage solutions that allow you to convert your home equity into a reliable source of cash flow. Pay bills & healthcare costs, help family, make home repairs, and more. [LEARN MORE](https://money.com/pr/s5c248a42e0b?ap_referrer=%2F401k-contribution-limits-2025-irs%2F) Longbridge Financial LLC (NMLS 957935) only offers reverse mortgage products. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/401k-contribution-limits-2025-irs/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Taxes", "item": "https://money.com/taxes/" }, { "@type": "ListItem", "position": 3, "name": "News", "item": "https://money.com/tag/news/" }, { "@type": "ListItem", "position": 4, "name": "Contribution Limits for 401(k)s Will Have a 'Super' Twist Next Year" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/401k-contribution-limits-2025-irs/#webpage", "url": "https://money.com/401k-contribution-limits-2025-irs/", "name": "Contribution Limits for 401(k)s Will Have a 'Super' Twist Next Year", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-11-01T19:41:51.000Z", "mainEntity": { "@id": "https://money.com/401k-contribution-limits-2025-irs/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/401k-contribution-limits-2025-irs/#breadcrumb" }, "dateModified": "2025-01-13T20:24:59.000Z" }, { "@type": "NewsArticle", "headline": "Contribution Limits for 401(k)s Will Have a 'Super' Twist Next Year", "articleSection": "Taxes", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2024/11/News-401k-Contributions-2025.jpg", "width": 2880, "height": 1920, "caption": "News-401k-Contributions-2025" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. 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