IRS just announced increases to retirement plan contributions for 2025. Some increases were not as big as previous years and no increase for Traditional and Roth IRAs, however income limits did increase. Also, there are new catch up limits for those 60 to 63 years old.
Below are the increases per the IRS for 2025:
Type of Account | 2024 Limit | 2025 Limit |
Traditional IRA | $7,000 | $7,000 (no change) |
Roth IRA | $7,000 | $7,000 (no change) |
HSA – Single | $4,150 | $4,300 |
HSA – Family | $8,300 | $8,500 |
SIMPLE IRA | $16,000 | $16,500 |
SEP IRA | $69,000 | $69,000 |
Most 401(k), 403(b), 457 | $23,000 | $23,500 |
Total Defined Contribution | $69,000 | $70,000 |
*Depending on Defined Contribution (401k), higher limits maybe
allowed
*Some of the above have income requirements to meet limits above
The IRS allows a “catch up” contributions for IRA’s of an additional $1,000 to those 50 and over, $3,500 for SIMPLE IRA and an extra $7,500 in a 401(k) and 403(b). New for 2025, However, investors in 401ks age 60 to 63 can save $11,250 for catch-up contributions based on changes enacted via Secure 2.0.
IRA’s have income limits for who can contribute and those income phase-out ranges have also been increased.
Filer | 2024 Phase Out | 2025 Phase Out |
Traditional IRA | | |
Single Filer w/ Plan @ work | $77,000-$87,000 |
$79,000-$89,000 |
Married Joint w/ Plan @ work | $123,000-$143,000 | $126,000-$146,000 |
Married Joint Only 1 w/ Plan Wk | $230,000-$240,000 | $236,000-$246,000 |
Roth IRA | | |
Single and Head of Household | $146,000-$161,000 | $150,000-$165,000 |
Married Joint | $230,000-$240,000 | $236,000-$246,000 |
As always, would love to talk with you about how to implement these changes into your financial plan to provide a clear path to your financial goals.
**This is not deemed to be Tax or Legal Advise**
Source:
https://www.cnbc.com/2024/11/01/ira-contribution-limits-2025.html
https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000.
https://www.kiplinger.com/taxes/401-k-and-ira-contribution-limit-changes#:~:text=IRS%20401(k)%20limits%202025&text=Similarly%2C%20the%20contribution%20limit%20for,of%20%2417%2C600%20under%20SECURE%202.0.
