NEW 2025 401k Limits: How Much Can You Really Contribute?

Описание: Financial adviser Hannah breaks down the complete 2025 401k contribution limits, including the new super catch-up contributions for ages 60-63.

Whether you're just starting your career or approaching retirement, understanding these limits is crucial for maximising your tax savings and retirement planning.



2025 401k Contribution Limits Breakdown:

Base limit: $23,500 (all ages)
Catch-up contribution (50+): Additional $7,500 = $31,000 total
NEW Super catch-up (60-63): Additional $3,750 = $34,750 total



Key Benefits Explained:

Pre-tax contributions lower your taxable income pound-for-pound
Roth 401k allows 3x more contributions than Roth IRA limits
Strategic tax planning opportunities for high earners
Retirement savings acceleration for older workers



Who This Applies To:

Employees with employer-sponsored 401k schemes
Business owners with solo 401k or SEP schemes
Anyone planning retirement savings strategy
High earners looking to reduce taxable income



Important Considerations:

Pre-tax vs. Roth 401k contribution strategies
How contribution limits interact with IRA limits
Employer matching contribution rules
Required minimum distributions (RMDs)
Tax planning implications for different income levels



Action Steps:

Check your current contribution percentage
Calculate maximum possible contributions based on your age
Consider increasing contributions if below limits
Review pre-tax vs. Roth strategy with adviser
Plan for catch-up contributions as you approach 50

Don't leave money on the table - these contribution limits represent significant tax-advantaged savings opportunities that reset every year.


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