|
Dear Colleagues,
The catch-up contribution limit, which generally applies to employees aged 50 and over who participate in the 403(b) Plan, remains at $7,500 for 2025. This means that the maximum contribution for 2025 is $31,000.
Under a change made in the Secure Act 2.0, a higher contribution limit applies to employees aged 60, 61, 62, and 63 who participate in the 403(b) Plan. For 2025, this higher catch-up contribution limit is $11,250 (instead of $7,500), which means that the maximum contribution for 2025 is $34,750.
Employees who participate in the program are eligible to make catch-up contributions as of the beginning of the year in which they attain age 50. Similarly, employees are eligible to make the higher contribution limit as of the beginning of the year in which they turn age 60.
Please note that employees who attain age 64 during 2025 are not eligible for the higher catch-up contribution limit. However, these employees will be eligible for the regular catch-up contribution limit ($7,500).
|