Internal Revenue Service building in Washington, D.C. Photo: Diego M. Radzinschi/ALM
Retirement savers can contribute an extra $500 to their 401(k) in 2025. The Internal Revenue Service announced today that the amount employees can contribute to their 401(k) plans in 2025 has increased to $23,500 – as forecast by recent Mercer and Milliman reports.
The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $23,500, up from $23,000 for 2024.
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