WASHINGTON (AP/WKRC) – Workers across the United States will be allowed to save a little more pre-tax earnings in their 401k retirement funds next year.

The IRS announced Friday an increase in the amount people can contribute to their 401(k) plans in 2025 — to $23,500, up from $23,000 in 2024.

The Internal Revenue Service detailed increases in annual cost-of-living adjustments for pension plans and other retirement accounts.

Workers participating in the 403(b) and the federal government’s 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 contribution catch-up limit for people 50 and older remains at $1,000 for 2025.

The agency last week announced increases to the standard deduction in its annual inflation adjustments for 2025. For single and married filers filing separate returns in tax year 2025, the standard deduction rises to $15,000 — $400 more than in 2024.

For couples filing jointly, that standard deduction will be $30,000 for 2025, an $800 increase from the previous year. And heads of household will get a standard deduction of $22,500, up $600 from 2024.

The income thresholds for all seven federal tax brackets have also been revised upward.

Last month, the Social Security Administration announced a 2.5 percent cost-of-living increase for benefit recipients beginning in January. That translates to an average jump of more than $50 in monthly checks for millions of people.