The amount individuals can contribute to their 401(k) plan in 2025 will increase to $23,500, up from $23,000 in 2024, according to the tax agency. The increase covers those who participate in 403(b) and most 457 plans, as well as the federal government’s Thrift Savings Plan.
The IRS also announced on Friday that the 2025 IRA contribution limit will be $7,000, which is the same as 2024. IRA catch-up contributions for individuals aged 50 and older remain $1,000 for 2025.
Participants in 401(k), 403(b), and most 457 plans, as well as the Thrift Savings Plan, who are 50 and older can contribute up to $31,000, starting in 2025. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62, and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
Further, The income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the Saver’s Credit all increased for 2025.
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