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For 2025, employees aged 50 and up who participate in most 401(k) plans or the federal government’s Thrift Savings Plan can save up to $31,000 annually, including a $7,500 catch-up contribution.
Employees who are at least 50 years old at any time during the year are now allowed additional pre-tax "catch up" contributions of up to $6,000 for 2015–2019, and $6,500 for 2020–2021. [40] [37] The limit for future "catch up" contributions may also be adjusted for inflation in increments of $500. In eligible plans, employees can elect to ...
Every year, taxpayers look for opportunities to reduce their tax bills, and one of the most popular ways to cut income is to make contributions to 401(k) retirement accounts. But for those who ...
Note this additional catch-up contribution does not apply to the SEP IRA. Calculating one's maximum annual solo 401(k) contribution limitation, including employee deferrals and profit sharing contributions, is based on self-employment income or W-2 income earned by the plan participant and the adopting employer's established legal entity (sole ...
The catch-up contribution limit that applies to employees aged 50 and up enrolled in most 401(k), 403(b), governmental 457 plans and the Thrift Savings Plan will remain at $7,500 for 2025. Workers ...
The so-called "catch-up" provision allows employees over the age of 50 to make additional contributions to their retirement plans over and above the normal limits. For workers who are already retired, the law raises the age for minimum required distributions (MRDs), directing the Treasury to revise its life expectancy tables and simplify MRD rules.
The tax deduction you can claim on these catch-up contributions could save you over $1,000 on your annual tax bill. Workers can defer paying income tax on as much as $19,500 that they contribute ...
403(b) plan limits. 2023. 2024. Change. Maximum salary deferral for workers. $22,500. $23,000 +$500. Catch-up contributions for workers 50 and older. $7,500. $7,500