The Internal Revenue Service has just announced contribution and benefit limits for 2025—and the maximum contribution limit for 2025 has increased to $70,000! (Up $1,000 from 2024!) For plans like the Board of Retirement offers, which allow after-tax contributions, this allows employees to save more!
The Internal Revenue Service has announced contribution and benefit limits for 2025. The limit on contributions by employees who participate in 401(k)s, 403(b)s, Sec. 457 plans, and the federal government’s Thrift Savings Plan have been increased to $23,500. The catch-up contribution limit for employees age 50 and over continues to be $7,500 for 2025.
The overall limit for these plans increased from $69,000 to $70,000 for 2025. For plans like the Board of Retirement which allow after-tax contributions, this allows employees to save more.
If your plan is adopting the SECURE 2.0 special catch-up limit contribution for ages 60 to 63, you can contribute a catch-up amount that is the greater of $11,250 or 150% of the regular catch-up limit.
The limit on annual contributions to an individual retirement account (IRA) remains $7,000 for 2025. The additional catch-up contribution limit for individuals age 50 and older was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2025.
Details on these and other retirement-related cost-of-living adjustments for 2024 are in the IRS’ 2025 Cost of Living Announcement and the IRS’ 2025 IRA Limit Announcement.
To find out more about your different retirement contribution options with the Board of Retirement, click here. If you would like to increase your contributions to your Board of Retirement plan, fill out a new salary reduction agreement and turn it into your employer (and then send us a copy). If you have any questions, you can contact our office at 877-767-7738.
