## Americans Can Save More for Retirement in 2025: IRS Raises 401(k) Limits
Americans will have the opportunity to save more for retirement in 2025, thanks to an increase in contribution limits announced by the IRS.
Here’s what’s changing:
* **Increased 401(k) Limit:** The annual limit for employee contributions to workplace retirement plans, including 401(k)s, 403(b)s, governmental 457 plans, and the federal government’s Thrift Savings Plan, is rising to **$23,500**, up from $23,000 in 2024.
* **Catch-Up Contribution Increase:** Individuals aged 50 and older will continue to benefit from “catch-up” contributions, allowing them to save an additional **$7,500**, bringing their total contribution limit to **$31,000**.
* **”Super Catch-Up” for 60-63 Year Olds:** Starting in 2025, individuals aged 60 to 63 participating in eligible workplace plans will have an even higher catch-up contribution limit of **$11,250**. This is separate from the regular catch-up contribution.
**Important Note:** Employers are not required to offer a “super catch-up” contribution, so individuals should confirm with their employers if this option is available.
* **IRA Limits Remain Steady:** The annual contribution limit for traditional and Roth IRAs remains **$7,000**, with a **$1,000** catch-up contribution for individuals aged 50 or older.
**Income Limits Adjusted:**
The IRS has also increased income ranges for eligibility for traditional IRA deductions, Roth IRA contributions, and the Saver’s Credit, reflecting adjustments for inflation.
**Resources:**
* **Full IRS Announcement:**
* **Don’t Put All Your Eggs in One Basket:** Learn why diversifying your retirement savings beyond 401(k)s and IRAs might be beneficial.
