Tax Tip #223

Effective for the 2025 tax year, active 401(k) participants aged 60 through 63 can contribute the greater of $10,000 or 150 percent of the 2024 catch-up contribution limit that is indexed for inflation. 

In 2025, the total limit for 401(k) contributions for those aged 60 to 63 is $10,000. An account holder can take advantage of this additional catch-up contribution if they reach the age of 60 but are not yet older than the age of 63 by the end of the calendar year. 

Employees aged 50 and older can make catch-up contributions up to $7,500 for 2024. Contribution caps for 2025 have yet to be announced.