I am writing to announce important updates for the 2025 tax year related to retirement savings. These updates, which include increased contribution limits and provisions from the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act, provide even more opportunities to enhance your retirement savings.
>> New for 2025 – you must change your Retirement Savings amounts for January 2025 if you intend to start or continue to maximize your contributions. Please see the Next Steps below for instructions.<<
Updated 2025 Contribution Limits
403(b) Plans
- The annual elective deferral limit will increase to $23,500 limit.
- Employees aged 50 or older can make an additional catch-up contribution of up to $7,500.
SECURE Act 2.0: Super Catch-Up Contribution
Starting in 2025, the “Super Catch-Up Contribution” provision under the SECURE Act 2.0 will apply to employees who will reach age 60 to 63 during the calendar year 2025:
Employees in this age group will be eligible to contribute up to $11,250 in additional catch-up contributions. This provision allows employees nearing retirement to save more aggressively during these critical years.
|
Participant Age |
Pretax employee contributions |
Catch-up contributions |
Total allowable annual contributions |
|
Under age 50 |
$23,500 |
— |
$23,500 |
|
Age 50 up to 59 through all of 2025 |
$23,500 |
$7,500 |
$31,000 |
|
Ages 60, 61, 62, 63 at any point in 2025 |
$23,500 |
$11,250 |
$34,750 |
|
Age 64 or older |
$23,500 |
$7,500 |
$31,000 |
Next Steps
We encourage employees to review their retirement contributions in light of these updates. Log into the Workday >> View Profile >> Benefits >> My Retirement Savings.
To make changes, log into Workday (browser only, not mobile) and go to Menu >> Benefits and Pay >> Change Retirement Savings.
If you would like to start or continue to maximize your contribution, we have created this Change Retirement Savings – Maximize Contributions Calculator for you to enter your annualized salary/hourly rate, age, and any contributions withheld YTD, and get the bi-weekly amounts to enter on the plans you have selected.
You can change your retirement contributions at any time throughout the year. Please use the effective dates below for employees who want to begin working towards the maximum for 2025.
- For salaried employees, the event date can be 1/3/25 for the first paycheck of the year.
- For hourly employees, use 12/28/24 as the event date for the first paycheck of the year.
- Do not use a retroactive date or a date in a period you have already been paid for.
Note the calculation and 403(b) contributions must be redone when there is any change to either your base annual salary or your base hourly rate, typically when the fiscal year increase goes into effect on July 1.
Please contact a member of our benefits team with any questions: Megan Childers x4355 or Leslie Perra x4478.