Planning for retirement is a critical aspect of looking towards the future, and the IRS recently announced that the contribution limits for 401(k), 403(b), governmental 457, and the federal government’s Thrift Savings Plan will increase from $23,000 to $23,500 in 2025. While individuals are able to contribute more to retirement through one of these plans, IRA plans are not increasing and remain limited to $7,000 per year.
For individuals over the age of 50, they can also contribute $7,500 on top of the typical annual limit due to the Thrift Savings Plan, helping employees “catch up” if they have not been able to contribute in the past.
To read further about the various contribution limits depending on marital status, click here.
