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 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.

The catch-up contribution limit for those 50 and over will hold steady at $7,500. Most people should contribute at least enough to their 401(k) to snag their full employer match, but whether maxing out the annual limit makes sense for you will depend in part on your company's plan.