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The IRS formally introduced the brand new 401(okay) contribution limits for 2025 (full information launch), which additionally included a brand new “tremendous catch-up” allowance for people who find themselves ages 60-63 at year-end 2025. Surprisingly, it goes again down as soon as you might be age 64. I hadn’t heard of this prior to now. As common, by “401(okay)” I imply that it applies to 401(okay), 403(b), governmental 457 plans, and the federal authorities’s Thrift Financial savings Plan.
The 2025 base 401(okay) contribution restrict is elevated to $23,500, up from $23,000. This WSJ article (paywall) has a useful chart for reference.
The 2025 base IRA contribution restrict stays at $7,000 (topic to earnings limits). Taken collectively, “maxing out” your IRA and 401(okay) now takes greater than $30,000 a 12 months even ignoring any catch-ups. That’s loads, however no matter you may cram in there might get roughly a 30% enhance in direction of your ultimate retirement stability.
Final up to date: November 5, 2024
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