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Washington — the internal revenue service announced today that the amount individuals can contribute to their 401 (k) plans in 2025 has increased to $23,500, up from $23,000 for 2024. The internal revenue service boosted the annual contribution limit for 401 (k)s, 403 (b)s,. The 401 (k) contribution limit for 2025 is $23,500 for employee salary deferrals, and $70,000 for the combined employee and employer contributions

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Employee contribution limits for 401 (k) have increased for 2025 Retirement savers contributing to a 401 (k) plan can make larger contributions in 2025 Employees can contribute up to $23,500 in2025, an increase from $23,000 in 2024

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Note that employees can never contribute more than their total compensation for the year.

The irs increased the annual contribution limit for 401 (k), 403 (b), and most 457 plans Employees under the age of 50 can now contribute up to $23,500 in 2025, a slight increase from last year’s cap. In most cases, all your contributions to a 401 (k) are due by the end of the calendar year But your total contributions across all your retirement plans can’t exceed the annual limit.

The 2025 employer 401 (k) maximum contribution is $46,500 This brings the combined employee + employer total maximum to $70,000 for 2025 for those under age 50.