The IRS Revealed 2025 Changes To Retirement 401(k) and IRA Contribution Limits [Video]

Retirement savers can stash more money in their 401(k)s next year.

Friday, the IRS announced cost-of-living adjustments for retirement plans and IRAs. The 401(k) contribution limit for 2025 is $23,500, up from $23,000 in 2024. However, individual retirement account (IRA) contributions will continue to be $7,000 in 2025, the same as in 2024.

Workers over the age of 50 are eligible to make additional contributions to “catch-up” as they approach retirement. The catch-up contribution limit for workplace retirement plans will also stay at $7,500 in 2025 for 401(k)s, 403(b)s, and other retirement plans.

However, starting next year, older workers will be able to make even greater catch-up contributions than other workers because of a provision in Secure 2.0, a federal retirement law. Beginning in 2025, employees aged 60, 61, 62, or 63 who participate in workplace retirement plans can make catch-up contributions of up to $11,250.

The IRS has also made some changes to phase-out ranges for traditional and …