Individual annual contribution limits to 401(k) and other defined contribution plans will rise to $23,500, up $500 from the current limit, the Internal Revenue Service announced Nov. 1.
The increase also affects participants in 403(b) plans, governmental 457(b) plans and the federal government’s Thrift Savings Plan.
The catch-up provision — affecting most people 50 and older — for the various defined contribution plans remains at $7,500, the IRS said.
However, a provision in SECURE 2.0 says people who are 60, 61, 62 or 63 can make a catch-up contribution of $11,500 next year, the IRS said.
The IRS also reported that the $7,000 annual limit on contributions to individual retirement accounts remains unchanged. The IRA catch-up contribution for people 50 and older remains at $1,000.
