2025 Annual Contribution Limits
My understanding is that in 2025 employees 60-63 will be able to make a larger catch-up contribution into employer retirement plans ($11,250 instead of $7,500). Will this option be available through all employer provided plans or is it plan specific (in that their employer plan (e.g. 401(k)) must adopt this new provision) and some 401(k) plans may not allow for these larger catch-up contributions for those 60-63?
Permalink Submitted by Alan - IRA critic on Sun, 2024-11-03 18:34
Most consultants think that the higher catch up limits must be provided by all plans that offer catch up contributions, but a plan does not have to offer any catch up contributions. However, the IRS has not yet clearly confirmed this conclusion to date.