IRS Raises Contribution Limits for 2025
2025 Annual Contribution Limits
In 2025, state of Missouri employees can contribute up to $23,500 into their MO Deferred Comp 457 account. That’s a $500 increase from the $23,000 limit in 2024. The catch-up contribution limit for employees age 50 and older will remain at $7,500 for 2025. This means, deferred comp participants who are 50 and older can contribute up to $31,000 in 2025.
In addition, new federal tax law (SECURE* 2.0) will allow employees age 60 to 63 to save even more for their future retirement with a higher catch-up contribution. Beginning in 2025, employees age 60, 61, 62 and 63 can contribute $11,250 instead of $7,500, totaling $34,750.
Lastly, state employees within three years of normal retirement and who have not consistently maxed out their past annual contributions, may contribute up to $47,000 in 2025.
| Contribution Limits | 2025 | 2024 | 2023 |
| Normal Contribution Limit (Under Age 50) | $23,500 | $23,000 | $22,500 |
| Age 50 and Over Catch-up Limit | $7,500 ($31,000 total) | $7,500 ($30,500 total) | $7,500 ($30,000 total) |
| Age 60-63 Catch-up Limit | $11,250 ($34,750 total) | ||
| Pre-Retirement Catch-up Provision Limit (For those within 3 years of retirement) | $23,500 ($47,000 total) | $23,000 ($46,000 total) | $22,500 ($45,000 total) |
Saver’s Credit Limits Also Increase in 2025
The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers has also increased to $79,000 for married couples filing jointly, up from $76,500; $59,250 for heads of household, up from $57,375; and $39,500 for singles and married individuals filing separately, up from $38,250.
The Saver’s Credit is designed to help low- and moderate-income workers save for retirement by providing a dollar-for-dollar reduction on their tax bill by the amount of the credit. If you qualify, the credit is based on your contributions to an eligible retirement savings plan, like deferred comp. You may be eligible for 50%, 20% or 10% of the maximum contribution amount, depending on your filing status and adjusted gross income (AGI).
Visit the IRS website for more information on contribution limits and the Saver’s Credit.
*Setting Every Community Up for Retirement Enactment Act of 2022