2025 Retirement Savings: What's New for Your 401(k)

Ever wondered how much you can sock away for retirement in a 401(k) next year? The Internal Revenue Service (IRS) has some good news! They've just announced new contribution limits for 2025. Starting next year, you can save up to $23, 500 from your paycheck before taxes, that's $500 more than this year. This applies to 401(k)s, 403(b)s, and most 457 plans, as well as the federal Thrift Savings Plan. But what if you're over 50 and playing catch-up? Well, the IRS has you covered too. The catch-up contribution limit remains at $7, 500. However, if you're between 60 and 63, you can save an extra $11, 250, thanks to changes introduced by Secure 2. 0. That's on top of the $23, 500 deferral limit for 2025. The IRS also shared news about Individual Retirement Account (IRA) savings limits and higher income thresholds for Roth IRA contributions. So, there are plenty of ways to boost your retirement nest egg in 2025.