As 2024 comes to a close, the IRS has announced updates to retirement contribution limits for 2025, creating new savings opportunities. These changes include increased standard limits and a new “super catch-up” contribution designed specifically for those aged 60-63. Understanding these updates and how to take advantage of them can help you make the most of your retirement planning this year.
2025 standard contribution limits
The IRS has adjusted contribution limits across a variety of retirement accounts, giving you more ways to build retirement savings in tax-advantaged accounts.
Some limits remain the same, while others increase
Contribution limits for Traditional and Roth IRAs have remained at $7,000 for 2025. Catch-up contribution limits for those 50 and older have also stayed at $1,000. However, the income thresholds for qualifying to make deductible contributions to a Traditional IRA and contribute to a Roth IRA have both risen for 2025.
SEP and SIMPLE IRAs both received higher contribution limits of up to $70,000 and $16,500 respectively, up from $69,000 and $16,000 in 2024. HSAs also allow for high contributions for both individuals and family accounts. CESA limits have remained at $2,000.
Employees can now contribute more to employer-sponsored plans like 401(k)s, 403(b)s, and 457 plans, providing increased capacity for tax-deferred growth. The new limit increased by $500 from 2024, up to $23,500. This allows for higher contributions within workplace plans, helping employees to grow their retirement savings.
What is the “super catch-up” contribution?
A notable addition for 2025 is the new “super catch-up” contribution, an enhancement introduced by the SECURE Act 2.0 for individuals in the 60-63 age bracket. Beginning in 2025, those aged 60 to 63 who participate in qualified work plans have a catch-up contribution limit up to $11,250. This has increased, up from $7,500 in 2024.
This provision is designed to help those closer to retirement boost their contributions during an important window for retirement planning.
Who qualifies for the super catch-up?
Individuals aged 60-63 with eligible employer-sponsored retirement plans are eligible for this expanded catch-up. These plans include 401(k)s, (including Solo 401(k)s), 403(b)s, 457 plans, and Thrift Savings Plans.
How is it different than the regular catch-up contribution?
While the standard catch-up contribution applies to those aged 50+, the super catch-up allows individuals aged 60-63 to contribute above this threshold, giving late-stage savers an added boost.
The super catch-up can be especially useful for those who may have started saving later, providing a chance to make up for missed contributions and strengthen retirement security.
You can find more information about the updates in Notice 2024-808.
To see all the changes coming to retirement accounts, read more about Secure Act 2.0.
