IRS increases 401(k), other retirement plan contribution limits for 2025

The Internal Revenue Service (IRS) on Friday announced that it increased the amount that individuals can contribute to their 401(k) and other retirement plans to account for inflation.

Each year, the IRS reviews tax thresholds and limitations for various retirement accounts and considers making a cost-of-living adjustment based on the impact of inflation since the previous change occurred.

For the 2025 tax year, the IRS is increasing the annual contribution limit for 401(k) plans by...