IRS Announces 2025 Contribution Limits for 403(b) and 401(k) Plans
The IRS has issued an official technical notice outlining the cost-of-living adjustments for retirement plan contribution limits in the 2025 tax year. Notably, the elective deferral limit for employees participating in 403(b) plans will increase to $23,500, reflecting adjustments that account for inflation. This update affects contribution thresholds for both 403(b) and 401(k) plans, providing employees and employers with revised guidelines for retirement savings in the coming year.
Confirmed Primary Sources for Reference and Verification:
- • IRS Notice 2024-80: The official IRS technical release detailing 2025 limits and related regulatory information.
- • Department of Treasury Fiscal Year 2025 Projections: Government projections supporting the adjustments in retirement plan limits.