IRS increases 401(k), other retirement plan contribution limits for 2025

Published On Nov 1, 2024, 3:47 PM

The IRS announced an increase in contribution limits for 401(k) and other retirement plans for the 2025 tax year. The annual contribution limit for 401(k) plans will rise to $23,500, up from $23,000 in 2024. Other retirement plans like 403(b) and governmental 457 plans will see the same increase. Contribution limits for IRAs will remain unchanged at $7,000, but the income thresholds for tax deductions have been adjusted upwards. This move reflects inflation considerations and is aimed at helping taxpayers save more for retirement.