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

Published On Jan 1, 2025, 9:00 AM

The IRS has announced an increase in the contribution limits for 401(k) and other retirement plans for 2025, raising the annual limit for 401(k) plans by $500 to $23,500. This increase is part of regular adjustments due to inflation. Other retirement plans, such as 403(b) and governmental 457 plans, will see the same contribution increase. While contribution limits for IRAs remain unchanged at $7,000, the income thresholds for tax deductions related to IRA contributions have been increased, allowing more individuals to benefit from tax deductions.