Texa$aver contribution limits change in 2025

January 08, 2025
Dollar signs graphic

2-minute read

Every year, the Internal Revenue Service (IRS) announces retirement plan contribution limits for the upcoming tax year. New Calendar Year 2025 limits will increase for many Texa$averSM 401(k) / 457 Program participants from $23,000 to $23,500. This means you cannot contribute more than $23,500 for each account type, 401(k) and 457. Unless eligible to make catch-up contributions, the maximum amount you can contribute to two Texa$aver accounts in 2025 is $47,000.

Texas saver 401 K 457 program logoCatch-up contributions

The IRS allows you to make additional catch-up contributions if you’re age 50 or over or are three years away from your normal retirement age and under-contributed in prior years. The Calendar Year 2025 catch-up contribution limits are below:

  • Catch-up contributions – The catch-up contribution limits for participants who are age 50 or over remain the same as in 2024. Participants can contribute an extra $7,500 as a catch-up contribution for a total of up to $31,000 in each plan in 2025.
  • Special catch-up contributions – If you participate in the Texa$aver 457 plan, the special catch-up limit for eligible participants increases to $23,500 in 2025 for a total of up to $47,000. If you are within three years of your normal retirement age and under-contributed in prior years, you may use the special catch-up provision, which allows you to contribute up to twice the normal contribution limit to your 457 plan. To use the special catch-up option, you must have contributed less than the maximum amount in prior years of eligibility.

You cannot participate in the age 50 and over catch-up and the 457 special catch-up at the same time. For help determining your eligibility, contact Texa$aver at (800) 634-5091.

Higher catch-up contributions for those aged 60, 61, 62 and 63

The SECURE 2.0 ACT of 2022 improves retirement savings options and expands coverages for deferred compensation programs like the Texa$aver program. Under a change made in Secure 2.0, a higher catch-up contribution limit applies for participants aged 60, 61, 62 and 63.

Beginning Jan. 1, 2025, during the years you turn ages 60, 61, 62 and 63 you can save an extra $10,000 or 150% of the regular annual catch-up limit (whichever is greater) in catch-up contributions. For 2025, the higher catch-up contribution limit for participants ages 60 to 63 is $11,250 instead of $7,500. Note that the standard limit resumes the year you turn 64.

Visit the IRS website for more information on 2025 contribution limits.

Contact Texa$aver at (800) 634-5091 for any questions or visit the IRS website for more information on 2025 contribution limits.