From $23,000 this year, the Internal Revenue Service said Friday that the maximum annual contribution for 401(k) retirement accounts will rise to $23,500 in 2025. This increase corresponds with changes in inflation and reflects the agency's attempt to assist Americans in rapidly increasing their retirement funds.While a benefit from the SECURE 2.0 Act of 2022 allows workers aged 60 through 63 to supercharge their catch-up contributions up to $11,250 next year, catch-up contributions for those aged 50 and above remain $7,500. Targeting late-stage savers, this shift gives them more chances to increase retirement savings as they get ready for their years beyond employment.The IRS also set income phase-out ranges for Roth IRA donations and IRA tax deductions. While for married couples filing jointly the range is $126,000 to $146,000, for singles covered by workplace pension plans deductions now phase out between $79,000 and $89,000.Roth IRA phase-off income restrictions for singles range from $150,000 to $165,000, and for joint filers from $236,000 to $246,000. More doors are opened for savers to enjoy Roth IRA benefits by this increased eligibility.These changes, which form part of the annual inflation review by the IRS, are meant to provide retirement savers an advantage in an erratic environment. Higher limits allow the IRS to invite more Americans to fully utilize tax-friendly retirement accounts and create wealth with less tax burden.