The Internal Revenue Service (IRS) has announced the new contribution limits for retirement plans for 2025.
401(k), 403(b), 457 Plans, and Thrift Savings Plans: Workers will now be able to elect up to $23,500 in salary deferrals. As in 2024, if you are age 50 or above, you can elect an additional $7,500 in catch-up salary deferrals, bringing the total to $31,000 for the year. Beginning in 2025, workers age 60-63 can make “super” catch-up contributions, up to $11,250 annually.
Individual Retirement Accounts (IRAs): The annual contribution limits for both Traditional and Roth IRAs remain unchanged for 2025 at $7,000. If you are age 50 or older, you can contribute an additional $1,000 in catch-up contributions, totaling $8,000 for the year.
SIMPLE IRAs: For 2025, contribution limits for SIMPLE IRAs will increase to $16,500. If you are age 50 or above, you can make an additional $3,500 in catch-up contributions, totaling $20,000. Workers aged 60-63 can contribute an additional $5,250, bringing the total to $21,750. The SECURE Act 2.0 allows for higher contributions under certain conditions for employers with fewer than 25 employees.
SEP-IRAs: Employers contributing to an employee’s SEP-IRA can contribute the lesser of 25% of the employee’s compensation or $70,000 annually. This is a $1,000 increase from the 2024 limit.
Solo/Individual 401(k) Plans: The employer contribution limit will increase to the lesser of 25% of self-employment compensation or $46,500. The maximum total contribution (employer plus employee) for a solo 401(k) participant will be $77,000 for those age 50 and older. For participants age 60-63, the maximum contribution will be $81,250 due to the “super” catch-up provision.
Health Savings Accounts (HSAs): Annual contribution limits for HSAs have been increased for 2025. Individuals enrolled in a qualifying health plan can contribute up to $4,300, while families can contribute up to $8,550, with an additional $1,000 catch-up contribution for those age 55 and older.
The chart below summarizes the 2024-2025 Contributions Limits for Retirement Accounts:
|
|
2024 |
2025 |
|
Maximum Annual IRA contribution Traditional or Roth (under age 50) |
$7,000 |
$7,000 |
|
Maximum Annual IRA contribution Traditional or Roth (age 50 or over) |
$8,000 |
$8,000 |
|
|
|
|
|
Maximum Annual 401(k), 403(b), or 457 salary deferral limit (under age 50) |
$23,000 |
$23,500 |
|
Maximum Annual 401(k), 403(b), or 457 salary deferral limit (age 50 or over) |
$30,500 |
$31,000 |
|
Maximum Annual 401(k), 403(b), or 457 salary deferral limit (age 60-63) |
$30,500 |
$34,750 |
|
|
|
|
|
Maximum SIMPLE IRA salary deferral limit (under age 50)1 |
$16,000 |
$16,500 |
|
Maximum SIMPLE IRA salary deferral limit (age 50 or over)1 |
$19,500 |
$20,000 |
|
Maximum SIMPLE IRA salary deferral limit (age 60-63)1 |
$19,500 |
$21,750 |
|
|
|
|
|
Maximum employer contribution to an employee’s SEP-IRA* |
$69,000 |
$70,000 |
|
*Limited to the lesser of 25% of the employee’s compensation and the listed maximums. |
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|
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Maximum Total Annual Solo/Individual 401k Contributions (under age 50)2 |
$69,000 |
$70,000 |
|
Maximum Total Annual Solo/Individual 401k Contributions (age 50 and over)3 |
$76,500 |
$77,500 |
|
Maximum Total Annual Solo/Individual 401k Contributions (age 60-63)3 |
$76,500 |
$81,250 |
|
|
|
|
|
Maximum Contribution to Health Savings Account (HSA) |
|
|
|
Individual |
$4,150 |
$4,300 |
|
Family |
$8,350 |
$8,550 |
|
HSA catch-up contribution (age 55 or older) |
$1,000 |
$1,000 |