IRS Increases 2025 Retirement Contribution Limits

The IRS has announced an increase in the annual contribution limit for 401(k), 403(b), and most 457 plans to $23,500 for the 2025 tax year, up from $23,000 in 2024. The catch-up contribution limit for those aged 50 and older remains at $7,500, allowing total contributions of $31,000 for eligible participants. Additionally, a new 'super catch-up' provision will allow individuals aged 60 to 63 to contribute $11,250 in 2025. The annual IRA contribution limit remains at $7,000, with catch-up contributions unchanged at $1,000 for those 50 and older. The IRS also increased the standard deduction to $15,000 for single filers and $30,000 for couples filing jointly, along with upward revisions to income thresholds for all federal tax brackets. These adjustments reflect annual cost-of-living increases designed to keep pace with inflation.