Empowering Financial Freedom Through Employer Retirement Plans

New Contribution Rules, New Opportunities

“Success is where preparation and opportunity meet.” This timeless wisdom is valuable to remember in many things, especially when planning for a life pivot like retirement.

It happens faster than one would expect. Suddenly, it’s your birthday again and you realize ‘retirement’ is no longer a glimmer on the horizon, but an exciting new adventure rapidly approaching. This moment of recognition marks the beginning of one of the most empowering pivots in your financial life. We like to think of retirement not as stepping off the career ladder, but as stepping onto a new platform of possibilities.

The most successful retirees understand that this pivot represents freedom, choice, and the opportunity to pursue dreams that may have been deferred during their working years. They approach retirement with the same strategic thinking that made them successful professionals, viewing it as their next major project to master. If you are years away or that pivot is just around the corner, there are valuable financial moves you can make to strengthen your financial house.

Employer Sponsored Plans & New Contribution Limits

Whether you have access to an employer-sponsored plan with a match or you are making your own contributions as a business owner, taking advantage of tax-advantaged retirement savings vehicles represents your most powerful opportunity to sock away valuable resources for this exciting transition. These plans – 401(k)s, 403(b)s, and 457 plans – aren’t just savings accounts; they’re your ticket to the freedom to choose how you spend your time.

Each retirement savings vehicle has its own IRS contribution limit that is updated annually, and these limits represent the maximum opportunity you have to invest. For 2025…

• 401(k), 403(b), and governmental 457 plans each have a contribution limit of $23,500.
• Individuals aged 50 and better are permitted to make extra “catch-up” contributions of $7,500, bringing their total potential contribution to $31,000 annually. This is a 32% increase in your ability to save smartly for the retirement pivot!
• *NEW* for 2025: If you are between the ages of 60 and 63, the “catch-up” contribution limit increases to $11,250 (from $7,500).

Some “Hidden Gem Opportunities” for Retirement Savings

• 403(b) Plan “15-Year Catch-Up” Provision: 403(b) plans feature a special “15-Year Catch-Up” provision which allows participants with at least 15 years of service, regardless of age, to make additional contributions above the standard maximum. For dedicated educators, healthcare workers, and nonprofit employees, this represents thousands of additional dollars to invest in their future freedom.
• 457(b) Plan “Pre-Retirement Catch-Up” Provision: 457(b) plans offer perhaps the most exciting opportunity of all: the “Pre-Retirement” catch-up. This provision may allow 457(b) participants within three years of the plan’s official retirement age to contribute as much as two times the annual contribution limit—up to $47,000 in 2025. For eligible participants, this represents nearly $50,000 in annual preparation power.

The Success Mindset: From Building Career to Building Freedom

Pre-retirement years represent an exciting shift in perspective. You’re no longer just building a career—you’re building the foundation for complete choice in how you spend your time. This pivot can be incredibly rewarding for those who approach it with the same determination and strategic thinking that made them successful in their careers.

The combination of maximized contributions, employer matches, and specialized catch-up provisions can transform your retirement outlook in ways that seemed impossible just a few years earlier.

This window for accelerated retirement plan contributions is precious and finite. Unlike earlier in your career when you had decades to gradually increase savings, the contribution rules for you the closer you get to the retirement pivot reward focused, strategic action. At Sterling, we are planning with each client to strengthen their unique financial foundation with customized savings strategies to support their most important life goals, including the successful pivot from career to the next opportunity on the horizon.

Success in retirement, like success in your career, comes from being prepared. The tools are available, the opportunities are substantial, and your most fulfilling years lie ahead. Your next great success story begins with the smart choices you make right now…and we are here with you every step of the way.

Sources & Disclosures

The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Sterling to be reliable, and Sterling has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, a recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is appropriate for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized reproduction or transmission of this material is strictly prohibited. Sterling accepts no responsibility for loss arising from the use of the information contained herein.

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