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The IRS introduced a brand new 401(k) catch-up contribution limits for 2025
In its announcement on Friday, the company bolstered 401(k) contribution limit to $23,500 for 2025. However catch-up contributions for savers aged 50 and over will stay unchanged at $7,500.
Limits apply to office plans, together with 401(ok)s, 403(b)s and most 457 plans, together with the federal Thrift Financial savings Plan.
The IRS additionally submitted limits for individual retirement accounts and greater income thresholds for 2025 Roth IRA contributions
Extra from Private Finance:
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IRS Announces Greater Estate and Gift Tax Exemption for 2025
Starting in 2025, 401(ok) catch-up contributions can be equal higher for savers aged 60 to 63due to a change launched through Secure 2.0. The catch-up contribution for these buyers can be $11,250 in 2025 for a complete of $34,750.
The IRS discover is available in a few week after the company unveiled dozens of inflation changes for 2025, together with federal tax groupsgreater capital gains bracketslarger estate and gift tax exemptionmodifications in eligibility for income tax creditby the way in which.
