IRS announces pension and retirement plan contribution adjustments for 2025

The IRS on Friday announced an increase to the amount individuals can contribute to their 401(k) plans in 2025 — to $23,500, up from $23,000 in 2024. The Internal Revenue Service detailed the increases in its annual cost-of-living adjustments for pension plans and other retirement accounts. The agency last week announced increases to the standard deduction in its annual inflation adjustments for 2025.