Retirement Updates for 2025 from Human Interest
There are a few retirement updates that I want to share with you as we get ready for 2025.
New contribution limits
The new annual contribution limits for those participating in a 401(k) or 403(b) are:
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$23,500 (up from $23,000 in 2024)
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$31,000 for those who are 50 and older (including a catch-up contribution of up to $7,500)
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$34,750 for those who are 60-63 years old (including a bigger catch-up contribution of up to $11,250 instead of $7,500)1
SECURE Act 2.0 – Auto-enroll
Starting in 2025, most new plans established on or after 12/29/2022 (when the SECURE Act 2.0 was enacted) must include auto-enrollment & auto-escalation features.
Automatic contributions must be at least 3% and may be up to 10% of employee compensation. Contribution rates must increase by 1% each year until at least 10% is reached, but not more than 15%.
Plans started before December 29, 2022, aren’t required to add auto-enrollment or auto-escalation.2
These updates provide a great opportunity to connect with your clients who currently have a plan and remind them of these changes.
If you have any questions about how these changes impact your clients’ plans or want to discuss them further, feel free to reach out to me! I’m here to help.
1401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000. IRS.gov. November 12, 2024.
2SECURE Act 2.0: Changes to retirement planning (2024). Human Interest. January 2024.
Best,
