If you work for an employer with 100 or fewer employees, they may offer a SIMPLE 401(k) plan instead of a Traditional or Roth IRA. (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 contribute to a SIMPLE plan as an employee are:
| Year | Normal Limit | Age 50+ Catch-Up |
Ages 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 | |
*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.