The IRS announces cost of living adjustments every year affecting dollar limitations for pension plans and other retirement-related items for that tax year. For 2025, the contribution limit for participants in 401(k), 403(b), and most 457 plans increased from $23,000 to $23,500.
If you're age 50 or older, you may contribute an additional $7,500 - $11,250 to your plan in 2025*. Your specific plan may have other limitations, and you can find out more in your plan documents.
*For plans which adopted this voluntary SECURE 2.0 provision: A higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
Source: IRS Notice 2024-80