The Internal Revenue Service (IRS) has announced an increase in the annual contribution limits for 401(k) and other retirement plans for the 2025 tax year. The 401(k) limit will rise by $500 to $23,500, while the IRA contribution limit will remain at $7,000. The catch-up contribution limit for workers aged 50 and over will also increase to $7,500 for 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan.
It's officially 2025 and a good time to reassess your retirement planning. The Internal Revenue Service , in November, announced that it had increased the amount that individuals can contribute to their 401 and other retirement plans to account for inflation.Each year, the IRS reviews tax thresholds and limitations for various retirement accounts and considers making a cost-of-living adjustment based on the impact of inflation since the previous change occurred.
Workers who are 50 and older can generally contribute up to $31,000 annually to those retirement plans starting in 2025 under changes made with the enactment of the SECURE 2.0 Act of 2022. YELLEN TOUTS IRS ENFORCEMENT AS HELPING CLOSE THE BUDGET DEFICITThat law also created a higher catch-up contribution limit for workers aged 60 to 63 who participate in those plans — which will be increased to $11,250 instead of $7,500 in 2025.
RETIREMENT PLANNING 401(K) IRA CONTRIBUTION LIMITS INFLATION
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IRS Increases 401(k) and Retirement Plan Contribution Limits for 2025The Internal Revenue Service (IRS) has announced an increase in the annual contribution limits for 401(k) and other retirement plans for the 2025 tax year. The 401(k) contribution limit is rising by $500 to $23,500, while the IRA contribution limit remains unchanged at $7,000. Catch-up contribution limits are also adjusted for older workers.
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IRS Raises 401(k) Contribution Limit for 2025The Internal Revenue Service (IRS) has increased the annual contribution limit for 401(k) plans and other retirement accounts for the 2025 tax year to account for inflation.
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IRS Increases 401(k) and Other Retirement Contribution Limits for 2025The Internal Revenue Service (IRS) adjusts contribution limits for various retirement accounts annually to account for inflation. For 2025, 401(k), 403(b), governmental 457, and Thrift Savings Plan limits are raised by $500 to $23,500. Individual Retirement Account (IRA) annual contribution limits remain at $7,000.
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IRS Increases 401(k) Contribution Limits for 2025The Internal Revenue Service (IRS) has announced an increase in the annual contribution limit for 401(k) and other retirement plans for the 2025 tax year.
Read more »