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The IRS announced new 401(k) Catch-Up Contribution Limits for 2025.
In its Friday press release, the agency reinforced the 401(k) contribution limit to $23,500 for 2025. But catch-up contributions for savers aged 50 and over will remain unchanged at $7,500.
The limits apply to company-sponsored plans, including 401(k), 403(b), and most 457 plans, as well as the Federal Thrift Savings Plan.
The IRS also revealed individual retirement account limits and bigger income thresholds for Roth IRA contributions for 2025.
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Starting in 2025, 401(k) catch-up contributions will be equal higher for savers aged 60 to 63thanks to a change enacted through Secure 2.0. The catch-up contribution for these investors will be $11,250 in 2025 for a total of $34,750.
IRS announcement comes about a week after the agency unveiled dozens of inflation adjustments for 2025, including federal income tax bracketshigher capital gains bracketsa bigger one exemption from inheritance and gift taxchanges to eligibility for earned income tax creditamong others.
