IRS increases pension and retirement plan contribution limits for 2025

The IRS connected Friday announced an summation to nan magnitude individuals tin lend to their 401(k) plans successful 2025 — to $23,500, up from $23,000 successful 2024.

The Internal Revenue Service elaborate nan increases successful its yearly cost-of-living adjustments for pension plans and different status accounts.

Workers who participate successful 403(b) and nan national government's Thrift Savings Plan will besides beryllium capable to summation their yearly publication to $23,500 successful 2025, up from $23,000 successful 2024.

Some yearly contributions stay nan same. The limit connected yearly contributions to an IRA will stay astatine $7,000 and nan IRA catch-up publication limit for group 50 and complete remains $1,000 for 2025.

The agency past week announced increases to nan modular conclusion successful its yearly ostentation adjustments for 2025. For azygous taxpayers and joined individuals filing separately successful taxation twelvemonth 2025, nan modular conclusion is rising to $15,000 — up $400 from 2024.

For couples who record jointly, that modular conclusion will beryllium $30,000 for 2025, an $800 jump from nan twelvemonth prior. And heads of households will get a $22,500 modular deduction, up $600 from 2024.

Income thresholds for each 7 national taxation bracket levels were besides revised upward.

Last month, nan Social Security Administration announced a 2.5% cost-of-living summation for benefits recipients starting successful January. That translates to an mean jump of much than $50 connected monthly checks for millions of people, nan smallest yearly COLA hike since 2021. Although ostentation has eased from its pandemic-era heights, immoderate advocates for older Americans opportunity nan humble bump successful Social Security benefits puts U.S. retirees astatine consequence of losing financial ground. 

In:
• Internal Revenue Service
• Taxes
• Inflation