The IRS announced in Novmember that the amount individuals can contribute to their 401(k) plans in 2025 has increased to $23,500, up from $23,000 for 2024. This means that employees can contribute up to $23,500 of their pre-tax income to their 401k plan in 2025.
For employees who are 50 years old or older, there is an additional catch-up contribution limit of $7,500. This means that employees who are 50 or older can contribute up to $31,000 in 2025. This catch-up contribution is designed to help older workers catch up on their retirement savings if they haven’t been able to save as much as they would like in previous years.