Upcoming Changes in Retirement Contributions

The contribution limits for employer-sponsored retirement plans are set to increase in 2025, with the salary deferral limit rising from $23,000 to $23,500. This change is particularly significant for individuals who may be doing year-end financial planning and should act promptly to adjust their contributions through HR. Additionally, the maximum for total contributions to defined contribution plans will increase from $69,000 to $70,000, allowing for more substantial savings. For those aged 50 and above, catch-up contributions remain at $7,500, but individuals aged 60 to 63 can take advantage of a special 'super catch-up' provision, allowing them to contribute an extra $3,750, leading to a total of $11,250.