Retirement savers can stash more money in their 401(k)s next year.

Friday, the IRS announced cost-of-living adjustments for retirement plans and IRAs. The 401(k) contribution limit f💎or 2025 is $23,500, up from $23,000 in 2024. However, individual retirement account (IRA) contributions will continue to be $7,000 in 2025, the s𓆏ame as in 2024.

Workers over the age of 50 are eligible to make additional contributions to "catch-up" as they approach retirement. The catch-up contribution limit for workplace retirement plans will also stay at $7,500 in 2025 for 401(k)s, 403(b)s, and other retirement plans.

However, starting next year, older workers will be able to make even greater catch-up contributions than other workers because of a provision in 澳洲幸运5官方开奖结果体彩网:Secure 2.0, a federal retirement law. Beginning in 2025, empl▨oyees aged 60, 61, 62, or 63 who participate in workplace retirement plans can make catch-up contributions of up to $11,250.

Phase-Out Ranges꧑ For Tr♏aditional IRAs Are Increasing In 2025

The IRS has also made some changes to phase-out ranges for traditional and 澳洲幸运5官方开奖结果体彩网:Roth individual retirement accounts (🌺IRAs).

Some people can deduct traditional IRA contributions from their income. However, depending on if that person has a retirement ♍plan at work and their income, that deduction may be phased out or reduced.

For individuals covered by a workplace retirement plan, the phase-out range has increased. In 2025, it will be between $79,000 and $89,000, up from between $77,000 and $87,000 in 2024. That mea𓄧ns individuals making more than $89,000 would receive no deduction while those making between $79,000 and $80,000 would receive a partial deduction.

💛 For married couples filing jointly in 2025, if the spouse who contributes to the IRA is covered by a workplace retirement plan, the phase-out range in 2025 is up 💝to $126,000 and $146,000.

People Wi𝄹th Higher Incomes May Be Eligible For Rot💎h Contributions In 2025

And the income phase-out ranges for 澳洲幸运5官方开奖结果体彩网:Roth IRAs are changing in 2025 too.

In 2025, the phase-out r♒ange for singles and heads of household is between $150,000 and $165,000, up from between $146,000 and $161,000.

Therefore, in 2025, people makinไg between $150,000 and $165,000 would be able to make reduced Roth IRA contributions, while those making above that amount would be ineligible to make any contributions.

For married couples filing jointly, the income phase-out range for Roth IRAs increased to between $236,000 and $246,000.