The Internal Revenue Service (IRS) announced increased contributions limits for 457(b), 401(k), and 403(b) retirement plans for calendar year 2025.
2025 MNDCP Annual Maximum Contribution Limits
| Participant Age | Maximum Limit |
|---|---|
| Under Age 50 | $23,500 |
| Age 50 & Over | $31,000 |
| Age 60, 61, 62 and 63 | $34,750 |
| Catch-Up Provision* | $47,000 |
*The Catch-Up Provision permits participants within three years of normal retirement age and under certain conditions to contribute up to $47,000 in 2025. Contact Us to speak with a retirement plan specialists for complete information. Eligible participants must apply to contribute up to the Catch-Up Provision limits.
Effective in 2025, the SECURE 2.0 Act increases the contribution limit for participants age 60, 61, 62 and 63.
Q. When is the age determined?
A. A participant's age is determined at the close of the calendar year. The increase applies to eligible
participants who would attain age 60 and would not attain age 64 by the close of the calendar year.
For example, a participant turning age 60 in May 2025 will be eligible for the increased contributions
as of January 1, 2025 because they will attain age 60 in 2025. A participant turning age 64 in June
2025 will not be eligible for the increased contributions because they will attain age 64 during 2025.
The standard age 50 & Over contribution limit will apply to this participant.
Q. What happens to the age 60-63 contribution limit after the participant turns age 64?
A. The contribution limit reverts to the age 50 & Over limit.