2025 IRS Contribution Limits: Make the Most of Your Retirement Plan
- February 6, 2025
This year, you'll have the opportunity to save more for retirement than ever before, thanks to higher salary deferral contribution limits for employee retirement plans. This means you can take full advantage of higher contribution thresholds, allowing you to maximize your savings potential and set yourself up for a more secure financial future. Whether you're looking to build your nest egg faster or catch up on retirement savings, these enhanced limits provide a great opportunity to make the most of your retirement plan.
For 401(k) plan holders, the limit for 2025 has increased to $23,500 a year, up from $23,000 in 2024. Individuals age 50 and older are still able to contribute an extra $7,500 for a total of $31,000. Individuals who turn age 60, 61, 62, or 63 in 2025 are eligible for an increased catch-up contribution of $11,250 for 2025.
Limits on personal, non-workplace retirement accounts, such as Individual Retirement Accounts, also known as IRAs, remain $7,000. Individuals 50 or older may contribute an additional $1,000. View the table below for a more in-depth overview.
|
Summary |
2024 |
2025 |
|
401(k), 403(b), governmental 457 plans, and federal government’s Thrift Savings Plan deferral limit (401k catch-up contribution is $7,500) |
$23,000 |
$23,500 |
|
Individual Retirement Accounts (IRA) and Roth IRAs contribution limit |
$7,000 ($8,000 for individuals age 50 or older) |
$7,000 ($8,000 for individuals age 50 or older) |
|
SEP IRA and Solo 401(k) contribution limit (25% of employee’s compensation, or the dollar amount listed –whichever is lower. For those 50 or older, there is also a $7,500 401(k) catch-up contribution amount, and for those who turn 60-63 during 2025, a larger catch up of $11,250 is permitted). |
$69,000 |
$70,000 (maximum compensation that can be considered for SEP-IRA contributions in 2025 is $350,000). |
|
SIMPLE IRAs salary deferral limit |
$16,000 |
$16,500 (Due to a change in SECURE 2.0, individuals can contribute up to $17,600 to certain applicable SIMPLE retirement accounts). |
|
Adjusted Gross Income IRA Qualifying Ceiling |
2024 |
2025 |
|
Single taxpayers covered by a workplace plan (traditional IRA tax deduction): |
Up to $87,000
|
Up to $89,000 |
|
Single and head of household taxpayer for Roth IRA contribution eligibility: |
Up to $161,000 |
Up to $165,000 |
|
Married couples filing jointly, both covered by a workplace plan (traditional IRA tax deduction): |
Up to $143,000 |
Up to $146,000 |
|
Married couples filing jointly, one spouse not covered by a workplace plan (traditional IRA tax deduction): |
Up to $240,000 |
Up to $246,000 |
|
Married couples filing jointly for Roth IRA contribution eligibility: |
Up to $240,000 |
Up to $246,000 |
DISCLOSURE
© 2025 Oppenheimer & Co. Inc. Transacts Business on All Principal Exchanges and Member SIPC. All Rights Reserved. The information contained herein is general in nature, has been obtained from various sources believed to be reliable and is subject to changes in the Internal Revenue Code, as well as other areas of law. Neither Oppenheimer & Co. Inc. (“Oppenheimer”) nor any of its employees or affiliates provides legal or tax advice. Please contact your legal or tax advisor for specific advice regarding your circumstances. This material is not a recommendation as defined in Regulation Best Interest adopted by the Securities and Exchange Commission. It is provided to you after you have received Form CRS, Regulation Best Interest disclosure and other materials. No part of this brochure may be reproduced in any manner without the written permission of Oppenheimer & Co. Inc. SIPC 7606748.1