Maxing out your Retirement Accounts in 2025

Planning for retirement is a crucial part of financial planning. For 2025, retirement contribution limits are set to increase, giving savers even more opportunities to build a secure future. Whether you’re just starting your retirement journey or making catch-up contributions as you approach retirement, understanding these limits is key to optimizing your savings.

Below is a detailed breakdown of the 2025 retirement contribution limits, including exciting new enhancements for savers aged 60 to 63.

*Numbers provided for employer-sponsored plans, only include maximum amounts for employee contributions. Any match or contribution provided by employer is not included in these amounts.

What’s new in 2025?

Enhanced Catch-Up Contributions for Ages 60–63

The SECURE 2.0 Act introduces a special benefit for those aged 60 to 63. If you fall into this age group, you can contribute the greater of $7,500 or 150% of the standard catch-up amount to your 401(k), 403(b), or 457(b) plan. This enhanced catch-up offers a significant boost to retirement savings during your peak earning years.

Automatic Enrollment for New Retirement Plans

Beginning in 2025, most new employer-sponsored retirement plans are required to include automatic enrollment features. Employees will be enrolled at a minimum contribution rate of 3% of their salary, increasing annually by 1% up to at least 10% (but no more than 15%). This makes it easier for workers to start saving without taking additional action.

Expanded Access for Part-Time Employees

Starting in 2025, part-time employees will be eligible to participate in 401(k) plans after working at least two consecutive years with at least 500 hours of service annually. This is a reduction from the previous three-year requirement.

Ready to Plan for 2025? Let’s Work Together

Retirement planning is about more than just making contributions—it’s about creating a strategy that aligns with your long-term goals. At Vesta Wealth Advisors, we’re here to help you navigate these changes and make the most of your savings opportunities.