Retirement Plan Contribution Limits
Retirement Plan Contribution Limits are increasing if you are age 60-63
In the critical years before retirement, you may be able to take advantage of increasing how much you’re saving over and above the additional amounts you already can contribute.
What this can mean for you
Based on IRS rules, The Texas A&M University System Tax Deferred Account (TDA) and the Texa$aver 457 Deferred Compensation Plan (DCP) already allow active employees who are age 50 or older to increase their annual employee plan contributions beyond standard IRS annual limits (known as “age-based catch-up contributions”). A new rule will enable active employees ages 60-63 to increase those contributions even more. New rule applicable for tax years beginning after December 31, 2024.
Here’s what the new rule can mean to employees ages 60-63:
| Active employee in the plan | Annual catch-up contribution limit |
| Age 50-59 (age end of 2025) | $7,500 |
| Age 60-63 (age end of 2025) | $11,250 Increased amount for 2025 (150% of the standard limit of $7,500 for 2024) |
| Age 64 or older (age end of 2025) | $7,500 |
Age-based catch-up contribution limits are indexed annually
How to increase your contributions for the TDA
Go to Workday to enroll or make changes to your TDA. You can find instructions on how to start your TDA deduction through Workday Help Job Aid – Change Benefits (TDA Plan Change).
How to increase your contributions for the DCP
Go to the Texa$aver website to enroll or make changes to your DCP. You can also call Texa$aver and speak to a representative at (800) 634-5091. Making decisions about your retirement accounts can be challenging. We encourage you to consult with your tax professional to understand what is appropriate for you.