IRS Boosts 2025 401(k) Contribution Limits for Enhanced Retirement Savings

The 401(k) contribution limits for 2025 have increased, allowing employees to contribute up to $23,500, with a combined employee and employer limit of $70,000. Catch-up contributions for those aged 60-63 will also rise to $11,250. Despite these increases, many employees are not maximizing their 401(k) contributions, which is crucial for a secure retirement given the decline of pensions and potential Social Security shortfalls. The article emphasizes the importance of building both tax-advantaged and taxable investment portfolios to ensure financial freedom and a comfortable retirement.