7 sources·Business

IRS Announces Increased 401(k) Contribution Limits for 2025

The IRS raises 401(k) contribution limits up to $23,500 for 2025, with additional catch-up options for older savers.

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Updated: Nov 1st, 2024, 8:28 PM ET

Summary

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The IRS has revised contribution limits for retirement plans in 2025, increasing the employee deferral limit to $23,500 and maintaining a $7,500 catch-up for those 50+. Notably, individuals aged 60-63 can contribute an extra $11,250. IRA limits remain unchanged at $7,000, with catch-up contributions still at $1,000. Additionally, income thresholds for Roth IRA contributions and Saver’s Credit have increased. While many workers do not max out their contributions, the updated limits provide enhanced opportunities for retirement savings.

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