Each year, the IRS sets limits on how much you can contribute to your 401(k). These limits help ensure tax benefits are applied fairly and consistently. If you’re age 50 or older, you can also make additional “catch-up” contributions to save more as retirement gets closer.

Who This Applies To

This article applies to participants in a 401(k) plan.

Contribution Limits for 2024 and 2025

  • 2024 Limits
    • Under age 50: $23,000
    • Age 50 or older: $30,500 (includes $7,500 catch-up)
  • 2025 Limits
    • Under age 50: $23,500
    • Age 50 or older: $31,000 (includes $7,500 catch-up)
    • Ages 60–63: $34,750 (includes new $11,250 “super catch-up” under Secure Act 2.0)

What Is a Catch-Up Contribution?

A catch-up contribution is an additional amount you can save once you turn 50. This helps you boost your retirement savings in your peak earning years.

Catch-Up Contribution Limits by Age

  • Ages 50–59
    You can make the standard catch-up contribution of $7,500.

New Secure Act 2.0 Rule (Starting in 2025)

  • Ages 60–63
    You qualify for a special higher limit:
    • Contribute up to $10,000 or
    • 150% of the standard catch-up amount (whichever is greater).
  • Age 64 and older
    Your limit reverts to the standard $7,500 catch-up.
    • Example: If you turn 64 in 2025, your catch-up contribution for 2025 is capped at $7,500.

How Our System Tracks Your Limit

When your employer submits your payroll contributions (elective deferrals):

  • If you’re under 50, your contributions will stop once you reach the standard IRS limit.
  • If you’re 50 or older, the system automatically accounts for your appropriate catch-up limit.
  • You don’t need to do anything—limits are built into our platform.

How Much Should You Contribute?

The right amount depends on your personal situation, but here are some things to consider:

  • Your retirement age and lifestyle goals
  • Other sources of retirement income (Social Security, IRAs, pensions)
  • Your current salary, expenses, and ability to save
  • Whether your employer offers a matching contribution (and how much)

Tips to Maximize Savings

  • Most people need 70–85% of their pre-retirement income annually in retirement.
  • You may spend 20+ years in retirement—plan accordingly.
  • Start saving early and contribute regularly, even if it’s just a small amount.
  • Aim to contribute at least enough to get your employer’s full match (if offered).
  • Use the power of compound growth—your money earns returns on both contributions and past earnings.

Tools to Help You Decide How Much to Contribute to Your Plan

Remember: small steps today lead to big results tomorrow. You can always adjust your savings rate as your situation changes.

How to Adjust Your Deferral Contribution Rate

You can change your contribution amount anytime once you've setup your account:

  1. Log in to your account
  2. From the left-side navigation menu, go to: 401(k) > Manage Deferrals
  3. Enter your new contribution percentage and click Save

What If You Contributed to Another Retirement Plan?

The IRS contribution limit applies to the total of your employee contributions across all 401(k) or 403(b) plans in the same year.

  • Employer match or profit-sharing contributions do not count toward this limit.
  • If you had another employer’s retirement plan earlier in the year, you are responsible for tracking how much you’ve already contributed.

Example:
Mary (age 45) contributed $4,125 to her old employer’s plan before starting her new job. For 2024, she can only contribute $18,875 to her new plan, so that her total contributions for the year do not exceed $23,000.

If you believe you've over contributed see: How Do I Correct an Over-Contribution to My 401(k)? 

 

Need Help?

If you have questions about your employee contributions, email us at info@myubiquity.com or chat with us 24/7 by clicking the chat icon after logging into your account.