The IRS issued guidance on cost‑of‑living adjustments for retirement-related items for tax year 2025 in Notice 2024-80.
The Internal Revenue Service announced the amount individuals can contribute to their 401(k) plans in 2025 has increased to $23,500, up from $23,000 for 2024.
The limit on annual contributions to an IRA remains $7,000.
The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k) plans, remains $7,500 for 2025. Therefore, participants who are 50 and older generally can contribute up to $31,000 each year, starting in 2025.