MEC Benefits Committee
The annual contribution limit for employees who participate in the 401(k) plan has increased to $23,500, and the catch-up contribution limit that generally applies for employees aged 50 and over remains $7,500 for 2025, for a total contribution limit of $31,000. There is one very important exception for those aged 60, 61, 62 & 63 under the SECURE 2.0 Act for 2025, there is a higher catch-up contribution limit of $11,250 instead of the $7,500.
For 2025, the total contribution limit to defined contribution plans like a 401(k) is $70,000 for both employee and employer contributions, except for those over age 50, where the limit increases to $77,500 because you can make an additional catch-up contribution of $7,500. However, the total is capped at 100% of your compensation, whichever is less. You have a great opportunity here to increase contributions to your 401(K) where you can make a Post-Tax contribution to your Plan account by check during a special window in November and December of each year. To make a Post-Tax contribution by check, follow the instructions on the One-Time Post-Tax Contribution Election Form, which is available from Fidelity. Post-tax contributions are subject to annual IRS limits, so if you mistakenly exceed the IRS contribution limit, you will receive a refund for the difference in the first quarter of the following year. Your one-time Post-Tax contribution will be invested based on your current investment elections on file.
Federal tax law limits the amount of eligible earnings that can be taken into account when making Post-Tax contributions each year under the Plan, and there may or may not be other regulations that apply. If you reside in the Commonwealth of Puerto Rico, the tax laws there may be different. Please contact the Fidelity Service Center at (800) 245-9034 for more information.
