How much can I contribute to my retirement plan at work in 2025?

Notice 2024-80 states the limitation under section 402(g) on the exclusion for elective deferrals as $23,500 for 2025. That is the figure that caps what you elect to defer out of your own pay. If you are aged 50 or over, the notice states a further catch-up limitation under section 414(v) of $7,500, which the notice publishes as a separate amount rather than folding it into the deferral figure.

What is the catch-up contribution for workers aged 50 and over in 2025?

It is $7,500. Notice 2024-80 states the catch-up limitation under section 414(v) for an applicable employer plan, which generally applies to individuals aged 50 or over, as remaining at that level for 2025. The notice sets it out in a sentence of its own, separate from the $23,500 elective deferral limitation under section 402(g), and it applies to plans other than the SIMPLE arrangements the notice addresses on their own.

Did the elective deferral limit go up for 2025?

Yes. Notice 2024-80 states the section 402(g) limitation as increased for 2025 and gives the new figure as $23,500. The section 414(v) catch-up limitation for individuals aged 50 or over did not move, and the notice states it as remaining $7,500. The notice distinguishes the amounts it increased from those it states as unchanged, and these two fall on opposite sides of that line.

Does the limit include what my employer contributes?

No. Notice 2024-80 states the $23,500 figure as the limitation under section 402(g) on the exclusion for elective deferrals, which is what you elect to defer. The overall limitation for defined contribution plans sits under section 415(c), and the notice adjusts that in its own sentence with its own amount. The two are published as separate items in the same notice.

Does the same limit apply to a governmental deferred compensation plan or the Thrift Savings Plan?

Notice 2024-80 states that the elective deferrals covered by the section 402(g) limitation include elective deferrals made to the Thrift Savings Plan. It also states the limitation on deferrals under section 457, concerning deferred compensation plans of state and local governments and tax-exempt organizations, as $23,500 for 2025. The notice publishes those as two limitations that happen to carry the same figure.

Is there an income limit on how much I can defer?

Notice 2024-80 states the section 402(g) elective deferral limitation as a single amount with no income-based reduction attached to it. The income-based figures in the same notice are tied to different provisions: the adjusted gross income limitations for the retirement savings contributions credit under section 25B, and the phase-out ranges for deducting a traditional IRA contribution under section 219 and for contributing to a Roth IRA under section 408A.

Is there a bigger catch-up contribution for ages 60 through 63?

Notice 2024-80 states a separate and higher catch-up limitation under section 414(v) for individuals who attain ages 60 through 63 during 2025. That figure is verified on the catch-up contribution page for this year rather than here, because the two amounts verified for this page are the section 402(g) elective deferral limitation and the section 414(v) catch-up limitation for individuals aged 50 or over.

Where does the 2025 contribution limit come from?

Notice 2024-80, the annual IRS notice of amounts relating to retirement plans and IRAs as adjusted for changes in cost-of-living. Section 415 of the Internal Revenue Code provides for limitations on benefits and contributions under qualified retirement plans, and section 415(d) requires the Secretary of the Treasury to adjust them annually for cost-of-living increases. The deferral and catch-up figures are adjusted at the same time and in the same manner as the limitation of section 415(b), after rounding rules are applied.

2025 401(k) Contribution Limit

Name: 2025 401(k) Contribution Limit
Creator: IRS

For 2025, the 401(k) Contribution Limit is $23,500 (Elective deferral), +$7,500 (Age 50 catch-up) and +$11,250 (Age 60 through 63 catch-up).

Elective deferral$23,500

Age 50 catch-up+$7,500

Age 60 through 63 catch-up+$11,250

Effective 2025-01-01Source: Notice 2024-80 (IRS)Verified 2026-09-01

Compared with 2024

Item	2024	2025	Change
Elective deferral	$23,000	$23,500	+$500 (+2.2%)
Age 50 catch-up	+$7,500	+$7,500	+$0 (+0.0%)
Age 60 through 63 catch-up	-	+$11,250	-

Who it applies to

Employees who make elective deferrals out of their pay into an employer-sponsored retirement plan, and the employers and plan administrators who apply the limitation each year. The notice states the figure under section 402(g) for the elective deferrals described in that section, and notes that those deferrals include elective deferrals made to the Thrift Savings Plan. The catch-up figure applies to participants aged 50 or over.

What changed this year, and why

Notice 2024-80 sets the limitation under section 402(g) on the exclusion for elective deferrals at $23,500 for 2025, an increase over the amount the IRS published for the prior year. The catch-up contribution limitation under section 414(v) that generally applies to individuals aged 50 or over is stated as remaining $7,500. The notice states the same $23,500 figure for the separate limitation on deferrals under section 457.

Common questions

How much can I contribute to my retirement plan at work in 2025?: Notice 2024-80 states the limitation under section 402(g) on the exclusion for elective deferrals as $23,500 for 2025. That is the figure that caps what you elect to defer out of your own pay. If you are aged 50 or over, the notice states a further catch-up limitation under section 414(v) of $7,500, which the notice publishes as a separate amount rather than folding it into the deferral figure.
What is the catch-up contribution for workers aged 50 and over in 2025?: It is $7,500. Notice 2024-80 states the catch-up limitation under section 414(v) for an applicable employer plan, which generally applies to individuals aged 50 or over, as remaining at that level for 2025. The notice sets it out in a sentence of its own, separate from the $23,500 elective deferral limitation under section 402(g), and it applies to plans other than the SIMPLE arrangements the notice addresses on their own.
Did the elective deferral limit go up for 2025?: Yes. Notice 2024-80 states the section 402(g) limitation as increased for 2025 and gives the new figure as $23,500. The section 414(v) catch-up limitation for individuals aged 50 or over did not move, and the notice states it as remaining $7,500. The notice distinguishes the amounts it increased from those it states as unchanged, and these two fall on opposite sides of that line.
Does the limit include what my employer contributes?: No. Notice 2024-80 states the $23,500 figure as the limitation under section 402(g) on the exclusion for elective deferrals, which is what you elect to defer. The overall limitation for defined contribution plans sits under section 415(c), and the notice adjusts that in its own sentence with its own amount. The two are published as separate items in the same notice.
Does the same limit apply to a governmental deferred compensation plan or the Thrift Savings Plan?: Notice 2024-80 states that the elective deferrals covered by the section 402(g) limitation include elective deferrals made to the Thrift Savings Plan. It also states the limitation on deferrals under section 457, concerning deferred compensation plans of state and local governments and tax-exempt organizations, as $23,500 for 2025. The notice publishes those as two limitations that happen to carry the same figure.
Is there an income limit on how much I can defer?: Notice 2024-80 states the section 402(g) elective deferral limitation as a single amount with no income-based reduction attached to it. The income-based figures in the same notice are tied to different provisions: the adjusted gross income limitations for the retirement savings contributions credit under section 25B, and the phase-out ranges for deducting a traditional IRA contribution under section 219 and for contributing to a Roth IRA under section 408A.
Is there a bigger catch-up contribution for ages 60 through 63?: Notice 2024-80 states a separate and higher catch-up limitation under section 414(v) for individuals who attain ages 60 through 63 during 2025. That figure is verified on the catch-up contribution page for this year rather than here, because the two amounts verified for this page are the section 402(g) elective deferral limitation and the section 414(v) catch-up limitation for individuals aged 50 or over.
Where does the 2025 contribution limit come from?: Notice 2024-80, the annual IRS notice of amounts relating to retirement plans and IRAs as adjusted for changes in cost-of-living. Section 415 of the Internal Revenue Code provides for limitations on benefits and contributions under qualified retirement plans, and section 415(d) requires the Secretary of the Treasury to adjust them annually for cost-of-living increases. The deferral and catch-up figures are adjusted at the same time and in the same manner as the limitation of section 415(b), after rounding rules are applied.

Every amount on this page is a published figure rather than yours. The 401(k) contribution planner takes the number you enter and works it out against them, showing which published figure it used.

What the limit counts, and the tax it does not save

An elective deferral is the amount a worker chooses to have contributed by an employer to a retirement fund instead of being paid as regular compensation. The IRS treats this set-aside as an employer contribution to a qualified plan. For traditional elective deferrals, the key tax benefit is that the amount is not included in wages subject to federal income tax at the time it is contributed, which reduces current taxable income. However, the deferral is still included in wages subject to social security and Medicare taxes, so payroll taxes are not reduced. Designated Roth contributions are a separate category and do not receive this upfront income tax exclusion. The annual limit on these deferrals applies across all covered retirement plans a worker participates in, and for 2025 that overall limit is $23,500. Workers who are age 50 or older by the end of the tax year may make additional catch-up contributions of $7,500 on top of the base limit.

If you’re covered by certain kinds of retirement plans, you can choose to have part of your com- pensation contributed by your employer to a re- tirement fund, rather than have it paid to you. The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. An elective deferral, other than a designated Roth contribution (discussed later), isn’t included in wages subject to income tax at the time contributed. However, it’s inclu- ded in wages subject to social security and Medicare taxes.
Publication 525 (2025), Taxable and Nontaxable Income (IRS)

One limit across every plan you defer into

The IRS imposes a single annual ceiling on elective deferrals that applies across all retirement plans a worker uses. For 2025, the overall limit on deferrals is $23,500. This ceiling covers contributions to the various types of employer-sponsored retirement plans, including cash or deferred arrangements, the federal Thrift Savings Plan, salary reduction simplified employee pension plans, savings incentive match plans for employees, tax-sheltered annuity plans, certain section plans, and section 457 plans. Each plan has its own specific limit, but amounts deferred under any specific plan limit count as part of the overall limit. The employer or plan administrator is expected to apply the proper annual limit when calculating plan contributions. However, the worker is personally responsible for monitoring the total amount deferred across all plans to ensure deferrals do not exceed the overall limit. If a worker participates in multiple plans, all elective deferrals must be added together and tested against the $23,500 ceiling. Workers age 50 or older may add catch-up contributions of $7,500 to the base limit.

Overall limit on deferrals. For 2025, you shouldn’t have deferred more than a total of $23,500 of contributions to the plans listed in (1) through (3), earlier, unless you are age 50 or older. The specific plan limits for the plans listed in (4) through (7), earlier, are discussed later. Amounts deferred under specific plan limits are part of the overall limit on deferrals. Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. However, you’re responsible for monitoring the total you defer to ensure that the deferrals aren’t more than the overall limit.
Publication 525 (2025), Taxable and Nontaxable Income (IRS)

The catch-up once you are old enough for it

If you are age 50 or older by the end of your tax year, your 401(k) plan may let you make catch-up contributions — extra elective deferrals on top of the regular $23,500 annual limit. For 2025, the catch-up limit is $7,500 for section 401(k) plans, as well as 403(b) plans, the Thrift Savings Plan, SAR-SEP plans, and governmental section 457 plans. If you are age 60, 61, 62, or 63 in 2025, the catch-up limit is higher: $11,250. These catch-up amounts are set by the IRS and apply in addition to whatever you are eligible to defer under the standard elective-deferral cap. SIMPLE plans have their own, smaller catch-up amount. Your employer or plan administrator should apply the proper limit when processing contributions, but you are responsible for monitoring the total you defer to make sure you do not exceed the overall limit.

Catch-up contributions. You may be allowed catch-up contributions (additional elective de- ferrals) if you’re age 50 or older by the end of your tax year. For 2025, the catch-up limit for section 401(k) and 403(b) plans, the TSP, SAR- SEP plans, and governmental section 457 plans is $7,500. The catch-up limit is $11,250 if you are age 60, 61, 62, or 63 in 2025.
Publication 525 (2025), Taxable and Nontaxable Income (IRS)

The larger catch-up in the year you turn 60 through 63

A participant who attains age 60, 61, 62 or 63 during the year is allowed a larger catch-up than other catch-up-eligible participants get. For 2025 that larger amount is $11,250 rather than $7,500, and it sits on top of the $23,500 elective deferral limit exactly as the smaller one does. The band is defined by the age reached during the year rather than one held throughout it, so someone who attains 60 in December is inside it for that whole year. Someone past the band is back to the ordinary amount: the larger figure is stated for those ages and no others. A plan is not required to offer it at all, and where the plan does not, the ordinary catch-up applies whatever the participant's age - which is why what payroll will actually take is the plan's answer and not only the notice's.

The catch-up limit is $11,250 if you are age 60, 61, 62, or 63 in 2025.
Publication 525 (2025), Taxable and Nontaxable Income (IRS)

What happens if you defer more than the limit

If a worker's total elective deferrals exceed the annual limit, the excess must be reported and removed. The worker is required to notify the plan by the date the plan sets. If the plan allows, the excess amount is distributed back to the worker, and if the worker participates in more than one plan, the excess can be paid out of any plan that permits such distributions. Each plan must be notified by its required date of the specific amount to be paid from that particular plan. The plan must then distribute the excess, along with any income the excess earned while in the account, by April 15 of the year following the year of the deferral. The worker must include the excess deferral in income for the year the deferral was made, reporting it on Form 1040 or 1040-SR by adding it to earned income on line 1h. If the excess is not distributed by the deadline, it remains in the plan and is taxed twice: once when contributed and again when eventually paid out as a distribution, unless the excess was a designated Roth contribution. If the corrective distribution is received by the April 15 deadline, the excess itself is not taxed again in the year received, though any income earned on it is taxable in the year it is taken out.

Excess deferrals. If your deferrals exceed the limit, you must notify your plan by the date re- quired by the plan. If the plan permits, the ex- cess amount will be distributed to you. If you participate in more than one plan, you can have the excess paid out of any of the plans that per- mit these distributions. You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. The plan must then pay you the amount of the ex- cess, along with any income earned on that amount, by April 15 of the following year. You must include the excess deferral in your income for the year of the deferral. File Form 1040 or 1040-SR to add the excess deferral amount to earned income on line 1h.
Publication 525 (2025), Taxable and Nontaxable Income (IRS)

Roth deferrals count against the same limit

Employers with section 401(k) plans can create qualified Roth contribution programs that allow you to designate part or all of your elective deferrals as after-tax Roth contributions. These designated Roth contributions are treated as elective deferrals for limit purposes, meaning they count against the same $23,500 annual limit that applies to traditional pre-tax deferrals. The key difference is tax treatment: while traditional elective deferrals reduce your taxable income in the year they're made, designated Roth contributions are included in your income when contributed. However, qualified distributions from the Roth account are tax-free in retirement. Your plan must maintain separate accounts and records for designated Roth contributions to track them properly. You can split your contributions between traditional and Roth deferrals in any combination, but the total of all your elective deferrals cannot exceed the annual limit, plus any applicable catch-up contributions if you qualify by age.

Designated Roth contributions. Employers with section 401(k) plans, section 403(b) plans, and governmental section 457 plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective de- ferrals to the plan designated as after-tax Roth contributions. Designated Roth contributions are treated as elective deferrals, except that they’re included in income.
Publication 525 (2025), Taxable and Nontaxable Income (IRS)

How each figure was verified

Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.

Notice 2024-80 (IRS)

Elective deferral: The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3), which includes elective deferrals made to the Thrift Savings Plan, is increased from $23,000 to $23,500.
Age 50 catch-up: The limitation under section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that generally applies for individuals aged 50 or over remains $7,500.
Age 60 through 63 catch-up: The limitation under section 414(v)(2)(E)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that applies for individuals who attain age 60, 61, 62, or 63 in 2025 is $11,250.

Fetched 2026-08-27T13:27:58.352Z
Verified 2026-09-01
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