In 2025, you'll have the opportunity to sock away even more money in your 401(k) thanks to higher contribution limits.

The IRS's contribution limit for 401(k) plans is higher in 2025, although the cap for IRAs is staying the same.

The IRS has announced the cost‑of‑living adjustments for pension plans and other retirement-related items for tax year 2025.

Every year, the amount of money you're allowed to contribute to an IRA or 401 (k) can change. And the IRS just announced 2025's contribution limits. Here's what you need to know. In 2025, you'll be able to contribute up to $23,500 to your 401 (k) if you're under the age of 50. That's a $500 increase from 2024.

The IRS announcement comes roughly one week after the agency unveiled dozens of inflation adjustments for 2025, including federal income tax brackets.

The federal government places annual contribution limits to 401(k), 403(b)s, IRAs, and Thrift Spending Plans (TSP) to prevent high-earners from receiving more tax breaks than the average worker. The contribution limits are updated annually,

The agency last week announced increases to the standard deduction in its annual inflation adjustments for 2025. For single taxpayers and married individuals filing separately in tax year 2025, the standard deduction is rising to $15,000 — up $400 from 2024.

The Internal Revenue Service (IRS) has released Notice 2024-80, detailing the cost-of-living adjustments for retirement plans and Individual Retirement Accounts (IRAs) for the year 2025. These adjustments will affect millions of Americans saving for retirement, with several key limits seeing increases.