mavii

As retirement planning becomes increasingly crucial, understanding the changes in 401(k) contribution limits is essential. In 2025, these limits are expected to rise, offering individuals more opportunities to bolster their retirement savings.

While the official IRS announcement will come later this year, the contribution limit for retirement accounts will likely increase from $23,500 to $24,500 in 2026, according to a new Milliman report.

This new plan, introduced under SECURE 2.0, have lower employee contribution limits compared to traditional 401(k)s and allow for reduced recordkeeping requirements, which reduce administration costs.