Catch-up contribution increases for 2025 may help you save more for retirement.
Have extra income you’d like to stow away for retirement? Or perhaps you want to make up for years you couldn’t save as much. When you turn 50, you may have access to a tool to help: catch-up contributions.
Catch-up contributions let you save more, either in your IRA or your employer’s retirement plan once you meet the regular contribution limit.
What are the 2025 catch-up contribution limits?
In 2025, if you’re still working, you can make a maximum annual contribution of $23,500 to your employer’s retirement plan.
But if you’re age 50 to 59, you may be able to make an additional catch-up contribution of up to $7,500 (this applies for those age 64 and up as well).
To be eligible for catch-up contributions in any given year you first must meet the maximum annual contribution IRS limit, or the max for your organization's retirement plan (if it includes a catch-up provision).
Common catch-up contribution limits for 2025
| 401(k)/403(b), most 457 plans | ||
|---|---|---|
| Annual contribution limit | $23,500 | |
| Age | 50-59 | 60-63 |
| Catch-up contribution | $7,500 | $11,250 |
| Total contribution with catch-up | $31,000 | $37,750 |
| Individual retirement account (traditional & Roth) | |
|---|---|
| Annual contribution limit | $7,000 |
| Catch-up contribution | $1,000 |
| Total contribution with catch-up | $8,000 |
| SIMPLE 401(k) & SIMPLE IRA |
||
|---|---|---|
| Annual contribution limit | $16,500 | |
| Age | 50-59 | 60-63 |
| Catch-up contribution | $3,500 | $5,250 |
| Total contribution with catch-up | $20,000 | $21,750 |
How to take advantage of catch-up contributions
If you're 50 or older, the catch-up provision can provide a great opportunity to contribute more to your retirement savings. This is especially true if you haven't always been able to contribute the maximum amount in the past.
The pre-tax contributions also allow you to reduce your current taxable income even further; it could possibly drop you down a tax bracket.
What’s next?
Log in to principal.com to see how much you’re saving each year—and if you might be able to up your contributions. Don’t have an employer-sponsored retirement account? We can help you set up your own retirement savings.
