In 2025, a new 'super funding' limit for some 401(k) savers will be implemented. Learn how to maximize your savings.

• In 2025, you can defer up to $23,500 into 401(k) plans, an increase of $500 from 2024, and workers age 50 and older can save an additional $7,500.
• Starting next year, the catch-up contribution for workers aged 60 to 63 will increase to $11,250, resulting in a total deferral limit of $34,750.
• To maximize higher limits for 2025, experts recommend increasing 401(k) contributions at present.

Financial experts advise that if you want to save more for retirement, it's wise to increase your 401(k) plan contributions for 2025.

In 2025, you can defer up to $23,500 into 401(k) plans, an increase from $23,000 in 2024. For workers aged 50 and above, the 401(k) catch-up contribution remains at $7,500 for 2025.

Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida, stated that there is a "super funding" opportunity for 401(k) catch-up contributions for a subset of savers.

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The 2025 catch-up contribution limit for employees ages 60 to 63, enacted via Secure 2.0, will increase to $11,250, resulting in a total 401(k) deferral of $34,750 for these investors.

Catherine Valega, founder of Green Bee Advisory, a Boston-area CFP and enrolled agent, stated that it is likely that no one is aware of the extra increase, and it may take some time for the general public to become aware of the new opportunity.

Experts suggest that boosting contributions later could still be beneficial for savers in this age range.

Increase 401(k) deferrals for 2025 now

Valega advised that if you plan to adjust 401(k) deferrals for 2025, "now is the time to be doing it."

It may take a few pay periods for 401(k) contribution changes to take effect, and you could miss out on some higher contributions in January if you wait, she stated.

Maxing out your plan later in the year can still be achieved even if you miss bigger deposits early, but higher percentages may have a greater impact on cash flow than people are typically willing to handle.

In early December, Lucas updated next year's 401(k) contributions for his clients.

""We're on track to begin next year with the first payroll," he stated."

In 2023, only about 14% of employees maxed out their 401(k) plans, according to Vanguard's 2024 How America Saves report, based on data from 1,500 qualified plans and nearly 5 million participants.