Thanks to the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, Americans should expect changes to their retirement savings starting in 2025. “More than half (57 percent) of workers think they’re behind on where they should be on their retirement savings. Specifically, 35 percent think they’re significantly behind on where they should be, and 21 percent think they’re slightly behind. That’s roughly the same as last year, when 56 percent of workers said they’re behind where they should be on their retirement savings,” according to a recent survey by Bankrate. These new retirement rules will mean a better chance for a comfortable retirement—here’s what to expect.
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Annual Contributions For 401(k)
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Employees will be able to contribute more money to their 401(k) accounts in 2025. “The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $23,500, up from $23,000,” says the IRS. “The limit on annual contributions to an IRA remains $7,000.”
Annual Contributions For IRA
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The cost-of-living adjustment for IRA contributions remains the same for 2025. “The limit on annual contributions to an IRA remains $7,000. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2025,” says the IRS.
Automatic 401(k) Enrollment
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Any businesses adopting new 401(k) or 403(b) plans in 2025 will be under mandatory requirements to enroll new employees in the plans, at a contribution rate between 3% and 10%. The contribution rate must be increased each year by 1% each year, to no more than 15%.
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Orphaned 401(k)s
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Starting in 2025, businesses will have to report information about abandoned or lost plans to the Department of Labor. This will help workers find their old plans. In the meantime, you can check National Registry of Unclaimed Retirement Benefits ormissingmoney.com to try and find any old or missing 401(k) plans.
Benefits for 60-Somethings
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Americans aged 60, 61, 62, and 63 have a special chance to make a catch-up contribution to their 401(k) in 2025. “For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500,” says the IRS. “Participants in most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $31,000 each year, starting in 2025.”