IRS announces 2025 contribution limits for IRAs, 401(k)s

The annual employee deferral limit for 401(k)s and other workplace plans is rising to $23,500 next year, $500 higher than in 2024, the IRS has announced.

Catch-up contributions for those 50 and older will remain at $7,500, but those aged 60 to 63 will be eligible for a higher limit of $11,250. Meanwhile, the IRA contribution limit will stay at $7,000.

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