The Internal Revenue Service said Friday that 401(k) contribution limits will climb to $23,500 next year, meaning retirement savers will be able to tuck away a little more in 2025. The $23,500 limit is a $500 increase from this year’s limits. The same ...

The Internal Revenue Service on Friday announced the 2025 contribution limits for 401(k) and Individual Retirement Arrangement plans.

The Internal Revenue Service said Friday that the amount individuals can contribute to their 401(k) plans in 2025 has increased by $500 to $23,500, up from $23,000 for 2024, as part of its annual cost-of-living adjustments,

"The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2025," the IRS said.

The IRS released its updated contribution limits and adjustments to eligibility thresholds for 401(k) plans, IRAs and other retirement plans to account for inflation.

The IRS has announced an increase to the amount individuals can contribute to their 401(k) plans in 2025, to $23,500, up from $23,000 in 2024

Come next year, you will be allowed to save a little more in your 401(k) on a tax-deferred basis than you can this year, unless you’re in your early 60s, in which case for the first time you’ll be allowed to save a lot more.

The new contribution limits are part of the IRS' annual cost-of-living adjustments for pension plans and other retirement accounts.

The IRS announcement comes roughly one week after the agency unveiled dozens of inflation adjustments for 2025, including federal income tax brackets.