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.
The additional catch-up contributions for employees aged 50 and over who participate in these plans remained the same at $7,500 for 2025.
For plans which adopted a 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.
The maximum contribution allowed to Traditional IRA and Roth IRA plans is $7,000. If you are over 50, you can contribute an additional $1,000. Roth IRAs have income limits, so confirm these limits for your specific tax situation before contributing to a Roth IRA (https://www.irs.gov/publications/p590a).
Sources: https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000, IRS Notice 2024-85, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits, https://www.irs.gov/publications/p590av