Nov. 1 (UPI) — The Internal Revenue Service on Friday announced the 2025 contribution limits for 401(k) and Individual Retirement Arrangement plans.
Yearly contribution limits for 401(k) plans increased to $23,000 from $22,500 last year, the IRS confirmed in a release.
Catch-up contributions made by those age 50 and older to IRA plans remain the same at $1,000.
Individuals can deduct contributions to a traditional IRA if they meet certain required conditions.
The amount one person can contribute to their Savings Incentive Match Plan for Employees or SIMPLE, increased to $16,000, up from $15,500 last year. Catch-up contribution limits for SIMPLE plan contributions remain unchanged at $3,500 for those people age 50 or older.
Phase-out ranges for IRA deductibility in 2025 have also been increased to between $123,000 and $143,000, up from between $116,000 and $136,000 last year.
Friday’s announcement by the IRS comes a little over three weeks after the Social Security Administration announced recipients will get a 2.5% benefits increase next year.
Earlier this week, the Commerce Department confirmed the Federal Reserve’s key inflation rate, the personal consumption expenditures price index, increased in line with expectations in September.
COMMENTS
Please let us know if you're having issues with commenting.