The new contribution limit for 401(k)s and other workplace retirement plans in 2025 will be $23,500, up from $23,000 currently, the Internal Revenue Service said Friday.
The catch-up contribution limit will remain the same at $7,500.
Now for an ounce of reality: Most people do not max out their 401(k) savings, whatever their applicable contribution limit.
Higher income thresholds for IRAsThe IRS did not increase the contribution limits for individual retirement accounts, known as IRAs.
If you’re married and filing jointly and you personally are covered by a workplace retirement plan, your joint modified AGI must not exceed $146,000, up from $143,000.
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