In IRS Notice 2024-80, the IRS announced the inflation-adjusted retirement figures for 2025. Key adjustments contained in the notice include, but are not limited to:
- The IRA contribution limit and catch-up contribution limit will remain at $7,000 and $1,000, respectively. Also included in the Notice are the increased income phase-out ranges;
- The SIMPLE contribution limit for businesses with 25 or more employees is increased from $16,000 to $16,500, while the catch-up contribution amount for most employees age 50 and older remains at $3,500 ($5,250 for employees aged 60, 61, 62, or 63). For businesses with fewer than 26 employees, the contribution limit is $17,600 and the general catch-up contribution limit remains at $3,850;
- The annual contribution limit for IRC §§401(k), 403(b), 457 governmental plans, and the federal government’s Thrift Savings Plan is increased from $23,000 to $23,500, while the catch-up contribution for most employees 50 and older remains at $7,500. However, employees aged 60, 61, 62, and 63 can make a catch-up contribution of up to $11,250; and
- The qualified charitable distribution limit is increased from $105,000 to $108,000.
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