If you work for an employer with 100 or fewer employees, they may offer a SIMPLE 401(k) plan instead of a Traditional 401(k) or a Roth 401(k). (If you’re curiouse, SIMPLE stands for Savings Incentive Match PLan for Employees.)
SIMPLE 401(k) employee contribution limits are lower than with the other types of 401(k) plans. In general, the amounts you can choose to contribute to a SIMPLE plan as an employee are:
Year
Normal Limit
Age 50+
Catch-UpAges 60-63
Catch-Up
2025
$16,500*
$3,500**
$5,250
2024
$16,000
$3,500
2023
$15,500
$3,500
2022
$14,000
$3,000
2021
$13,500
$3,000
2020
$13,500
$3,000
2019
$13,000
$3,000
2018
$12,500
$3,000
2017
$12,500
$3,000
2016
$12,500
$3,000
2015
$12,500
$3,000
Employers, on the other hand, are required to make contributions to the SIMPLE 401(k) plan. For each eligible employee, the employer must either match up to 3% of pay or make a 2% non-elective contribution. No other contributions can be made by the employer.
*According to the IRS, “The limitation for certain of those accounts or plans under section 408(p)(2)(E)(i)(I) or (II) remains $17,600.”
**Thanks to SECURE 2.0, a different catch-up limit applies for employees aged 50+ (but not ages 60-63) who participate in certain applicable SIMPLE plans. For 2025, this different limit is $3,850 instead of $3,500. Check with your plan manager to see if your plan allows this different amount.