Come next year, you will be allowed to save a little more in your 401(k) on a tax-deferred basis than you can this year, unless you’re in your early 60s, in which case for the first time, you’ll be allowed to save a lot more.
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 IRS did not, however, increase the limit on catch-up contributions – that’s the extra amount of money people 50 and older can contribute annually in tax-advantaged plans like 401(k)s, 403(b)s, 457 plans and the federal government’s Thrift Savings Plan. The catch-up contribution limit will remain the same at $7,500.
Taken together, though, that means anyone in their 50s next year can save up to $31,000 for their retirement nest egg, and those savings will not be subject to …