Boost to 401(k) Deferral Maximum Reflects Improving Economy (1)

Workers can add up to $23,500 to their 401(k) plans beginning next year, up $500 from the 2024 contribution limits, according to the IRS.

The slate of new government cost-of-living adjustments announced Friday will mean qualified workplace savers can claim tax advantages on more of their savings, but those limits won’t be extended to individual retirement account holders or older workers wanting to catch up on their savings.

IRA annual contribution limits will remain at $7,000 in 2025, according to IRS Notice 2024-80. Catch-up contributions for workers 50 and older will still be $7,500, although SECURE 2.0 Act adjustments ...