[ad_1]
Cecilie_Arcurs | E+ | Getty Images
The IRS has announced new 401(k) catch-up contribution limits for 2025.
In its release on Friday, the agency boosted the 401(k) contribution limit to $23,500 for 2025. But catch-up contributions for savers age 50 and older will remain unchanged at $7,500.
The limits apply to workplace plans, including 401(k)s, 403(b)s and most 457 plans, along with the federal Thrift Savings Plan.
The IRS also unveiled individual retirement account limits and bigger income thresholds for Roth IRA contributions for 2025.
More from Personal Finance:
IRS announces new federal income tax brackets for 2025
The IRS unveils higher capital gains tax brackets for 2025
IRS announces bigger estate and gift tax exemption for 2025
Starting in 2025, 401(k) catch-up contributions will be even higher for savers age 60 to 63, thanks to a change enacted via Secure 2.0. The catch-up contribution for these investors will be $11,250 in 2025 for a total of $34,750.
The IRS announcement comes roughly one week after the agency unveiled dozens of inflation adjustments for 2025, including federal income tax brackets, higher capital gains brackets, a bigger estate and gift tax exemption, changes to eligibility for the earned income tax credit, among others.
[ad_2]
Source link
