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The IRS has announced that the amount of tax-favored funds that you can sock away for retirement is increasing. In 2025, the amount individuals can contribute to their 401(k) plans will tick up to $23,500—it was $23,000 for 2024.
The announcement is tied to cost‑of‑living adjustments for pension plans and other retirement-related items for tax year 2025 (those adjustments are required by law).
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