Reported 2 days ago
The IRS will implement three major changes to 401(k) plans in 2025, aimed at enhancing retirement savings. Firstly, the maximum individual contribution limit will increase from $23,000 to $23,500. Secondly, workers aged 60 to 63 can make additional catch-up contributions of $11,250, raising their total to $34,750. Lastly, the income limits for claiming the Saver's Credit will be higher, allowing more individuals to receive valuable tax credits on their contributions. These adjustments encourage both increased contributions and better tax advantages for savers.
Source: YAHOO