Planning for retirement has never been more critical, and 2025 brings exciting updates for 401(k) savings that every small business owner, employee, and retirement planner should know. With increased contribution limits, new opportunities for catch-up contributions, and simpler options like the Starter 401(k), there’s something for everyone.

In this blog, we’ll break down the key changes, explore strategies to maximize your retirement savings, and show how we can help you achieve your financial goals.

The 401(k)-contribution limit for employees has increased to $23,500 for 2025, up from $22,500 in 2024. This means you can save even more of your pre-tax dollars toward retirement. If you’re 50 or older, you can contribute an additional $7,500, bringing your total to $31,000.

💡 Tip: Aim to maximize your contributions, especially if you’re nearing retirement. Every extra dollar saved today can significantly impact your future.

A new enhancement allows those aged 60–63 to contribute up to $34,750 annually, including an additional catch-up contribution of $11,250. This is a game-changer for those in their peak earning years who want to secure their golden years.

💡 Action Step: If you’re in this age group, prioritize taking advantage of this opportunity.

Employers and employees combined can contribute up to $70,000 to a 401(k) plan. This is a fantastic benefit for small business owners who want to offer competitive retirement benefits while maximizing their personal contributions.

💡 Why It Matters: Offering a robust retirement plan can attract and retain top talent while providing tax advantages for your business.

For small businesses or startups looking to offer retirement benefits without the complexity of traditional plans, the Starter 401(k) is an excellent option. With contribution limits of $6,000 (+$1,000 for those aged 50+), it’s a simple, low-cost way to support employees’ retirement savings.

💡 Ideal For: Small business owners and teams who want an easy, compliant retirement savings plan.

Many employers offer to match a percentage of employee contributions. Don’t leave this free money on the table! Check your plan’s terms and aim to contribute enough to get the full match.

💡 Pro Tip: Use automated contributions to ensure consistent savings and help you meet the employer match effortlessly.

Why Choose Us?

Navigating 401(k) options can be overwhelming, but you don’t have to do it alone. We specialize in helping small business owners and employees optimize their retirement strategies while ensuring compliance and simplicity.

Take action today and take charge of your financial future! Whether you’re a business owner ready to set up a Starter 401(k) for your team or an employee looking for expert advice to maximize your 401(k) contributions, we’re here to help. Call us now at 870-275-4304 or visit us online at quraishilaw.com. Don’t wait—2025 is your year to secure your retirement and achieve your financial goals. Let’s work together to make it happen!