CBS News
IRS increases pension and retirement plan contribution limits for 2025
The IRS on Friday announced an increase to the amount individuals can contribute to their 401(k) plans in 2025 — to $23,500, up from $23,000 in 2024.
The Internal Revenue Service detailed the increases in its annual cost-of-living adjustments for pension plans and other retirement accounts.
Workers who participate in 403(b) and the federal government’s Thrift Savings Plan will also be able to increase their annual contribution to $23,500 in 2025, up from $23,000 in 2024.
Some annual contributions remain the same. The limit on annual contributions to an IRA will remain at $7,000 and the IRA catch-up contribution limit for people 50 and over remains $1,000 for 2025.
The agency last week announced increases to the standard deduction in its annual inflation adjustments for 2025. For single taxpayers and married individuals filing separately in tax year 2025, the standard deduction is rising to $15,000 — up $400 from 2024.
For couples who file jointly, that standard deduction will be $30,000 for 2025, an $800 jump from the year prior. And heads of households will get a $22,500 standard deduction, up $600 from 2024.
Income thresholds for all seven federal tax bracket levels were also revised upward.
Last month, the Social Security Administration announced a 2.5% cost-of-living increase for benefits recipients starting in January. That translates to an average jump of more than $50 on monthly checks for millions of people, the smallest annual COLA hike since 2021. Although inflation has eased from its pandemic-era heights, some advocates for older Americans say the modest bump in Social Security benefits puts U.S. retirees at risk of losing financial ground.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
A shark bit a Maui surfer Friday morning and severed his leg, authorities said.
The man, 61, was surfing off Waiehu Beach Park Friday morning in a surf spot known as Sand Piles when a shark bit him,” Maui County said in a news release.
Police officers who arrived to the scene first tried to control the bleeding with tourniquets. His leg was “completely severed just below the knee,” officials said.
Witnesses told CBS affiliate Hawaii News Now that other surfers helped the man swim back to shore.
“I heard this yell and I looked, and all of a sudden I just seen him splash, and I don’t know what was happening,” witness David Basques told Hawaii News Now. “…He swam himself back maybe more than half the way, and then I seen somebody jump in and they went bring him inside.”
The man was alert while being treated on shore and then taken to Maui Memorial Medical Center in critical condition.
“I would like to commend the patient for his strength and wherewithal, getting himself to shore,” Maui Fire Department Assistant Chief Jeff Giesea told reporters, according to KGMB. “I mean, that’s extraordinary. Whatever Good Samaritans offered assistance, I’d like to commend them as well.”
The incident prompted officials to close the beach park. Officials warned people to stay out of the water in the area. The public warning to stay out of the water for a mile in each direction of the incident will be in effect until at least noon Saturday. The warning will be extended if there is a shark sighting in the area.
Maui fire and ocean safety officials were patrolling the waters using rescue watercraft and a drone. State officials provided shark warning signs and helped with cordoning off the area.
There were no details provided on what kind of shark was involved.
In June, well-known surfer Tamayo Perry was killed in a shark attack while surfing off Oahu’s North Shore.