IRS Plan Maximums - 2025

401(k) -

Pre-Tax & Roth - $23,500.  Plan participants are eligible to contribute up to the IRS maximum. This total includes both Roth and Pre-Tax amounts. Once you reach a total of $23,500 in contributions you may not contribute additional funds for the plan year in which the maximum is met. 

• Pre-Tax Contributions - When you opt to defer contributions from payroll as a pre-tax contribution, the total amount contributed will reduce the gross income reported to IRS. For example: If your salary is $40,000 and you contribute $5,000 pre-tax to the retirement plan. The income reflected on the W-2 for tax reporting would be $35,000. 
• Roth Contributions -  A Roth deferral is an after-tax contribution, which means you pay current income tax on the deferral. Since taxes are paid on the deferral, the amount is included in the gross income on the W-2. You won’t pay tax on it again when a distribution of your Roth deferral is processed. In addition, if you take a qualified distribution, you do not pay tax on the earnings either. This means that the distribution of the Roth earnings can be tax-free, not just tax-deferred.
• If you require guidance on which type of deferral is right for you, contact your Financial Planner or Tax Advisor.

Catch-Up - $7,500. Participants over the age of 50 are permitted to contribute an additional amount to increase their total contributions for the plan year. Under SECURE 2.0, a higher catch-up contribution limit may apply for employees aged 60, 61, 62 and 63 as of December 31, 2025. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.