Increased limits for retirement programs

Every year, the IRS releases updated limits for retirement programs, such as those sponsored by USC. The increased limits allow for additional opportunities for you to save for retirement. 

The limits for 2025 are:

  • $23,500 – annual below age 50 employee contributions to a 401(k), 403(b), or 457(b) Plan (up from $23,000).
  • $31,000 – annual age 50 or above employee contributions to a 401(k) or 403(b) plan (up from $30,500). Note: Tax-exempt 457(b) plans like ours do not have a 50-and-over provision. 
  • $34,750 (new in 2025) – annual age 60-63 employee contributions to a 401(k) or 403(b) plan. Note: Tax-exempt 457(b) plans like ours do not have a 60-63 catchup provision. 
  • $350,000 – annual earnings cap for retirement (up from $345,000).
  • $269,000 – 2024 annual earnings required for 2025 USC 457(b) Plan eligibility (up from $257,000).
  • This is a great time to review your retirement contribution elections in Workday. You can confirm that you are taking full advantage of the program and prepare for any 2025 changes you want to make in December for January 2025.

If you have any questions, contact the HR Service Center.