Workers will be able to contribute more money to their 401(k) retirement plans next year, under new limits set by the Internal Revenue Service.
The I.R.S. is increasing the maximum annual contribution that employees can make, without paying upfront taxes, to $17,000. The increase, required by law to adjust for inflation, is $500 higher than this year’s level. The ceiling hadn’t been raised since 2009 because inflation had been too low to prompt an increase.