Retirement Savings Boost: 401(k) Limit Jumps to $23,500 in 2025
In a move to help Americans better prepare for their golden years, the Internal Revenue Service (IRS) has announced a significant increase to the 401(k) contribution limit for 2025 . The limit will rise from $22,500 in 2024 to an impressive $23,500 in the upcoming year, providing a substantial boost to retirement savings. This change is particularly noteworthy, as it allows individuals to contribute even more of their earnings towards their 401(k) plans , which offer valuable tax advantages . Whether you choose a traditional 401(k) with pre-tax contributions or a Roth 401(k) with after-tax contributions, this increase presents an excellent opportunity to maximize your retirement savings. At Sai CPA Services , our team of experienced financial professionals is here to guide you through the nuances of this change and help you develop a personalized retirement strategy. We can provide insights on employer matching , investment options , and withdrawal gu...