WASHINGTON — If you are nearing retirement, you will soon be able to stash even more money into your nest egg — if you can afford it.
The Internal Revenue Service announced that the maximum amount individuals can contribute to their 401(k) or similar plans in 2025 will increase to $23,500, up from $23,000 for 2024.
The federal government already lets those 50 and older make extra contributions so that they can save more as they near retirement age. This is known as a “catch-up” contribution.
In 2025, the standard catch-up contribution will stay the same, with a max of $7,500, according to the IRS.
But starting next year, workers ages 60 to 63 will be able to make “super” catch-up contributions, up to $11,250 annually, which is an additional $3,750.
That means they can potentially contribute up to $34,750 in total, each year, to a workplace retirement account.
The substantially higher …