Certain retirement plan and IRA limits rose for 2025. These tables offer an overview of the changes.
Elective deferral limits | 2024 | 2025 |
|---|---|---|
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1(includes Roth contributions) | Lesser of $23,000 or 100% of compensation ($30,500 if age 50 or older)2 | Lesser of $23,500 or 100% of compensation ($31,000 if age 50 or older; $34,750 if age 60 to 63)2 |
| SIMPLE 401(k) plans and SIMPLE IRA plans1 | Lesser of $16,000 or 100% of compensation ($19,500 if age 50 or older) | Lesser of $16,500 or 100% of compensation ($20,000 if age 50 or older; $21,750 if age 60 to 63) |
| SIMPLE 401(k) plans and SIMPLE IRA plans with 25 or fewer employees (or those that elect these higher limits)1 | Lesser of $17,600 or 100% of compensation ($21,450 if age 50 or older) | Lesser of $17,600 or 100% of compensation ($21,450 if age 50 or older; $22,850 if age 60 to 63) |
| Starter 401(k) plans and safe-harbor 403(b) plans | Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older) | Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older) |
IRA contribution limits | 2024 | 2025 |
|---|---|---|
| Traditional and Roth IRAs | Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or older) | Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or older) |
Defined benefit plan annual benefit limits | 2024 | 2025 |
|---|---|---|
| Annual benefit limit per participant | Lesser of $275,000 or 100% of average compensation for highest three consecutive years | Lesser of $280,000 or 100% of average compensation for highest three consecutive years |
Defined contribution plan limits [qualified plans, 403(b) plans, and SEP plans] | 2024 | 2025 |
|---|---|---|
| Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) | Lesser of $69,000 or 100% (25% for SEP) of participant's compensation | Lesser of $70,000 or 100% (25% for SEP) of participant's compensation |
| Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals) | $2,500 | $2,500 |
| Retirement plan compensation limits | 2024 | 2025 |
|---|---|---|
| Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans/SEPs) | $345,000 | $350,000 |
Compensation threshold used to determine a highly compensated employee | $155,000 (when 2024 is the look-back year) | $160,000 (when 2025 is the look-back year) |
Compensation threshold used to determine a key employee in a top-heavy plan | $1 for more-than-5% owners $220,000 for officers $150,000 for more-than-1% owners | $1 for more-than-5% owners $230,000 for officers $150,000 for more-than-1% owners |
Compensation threshold used to determine a qualifying employee under a SIMPLE plan | $5,000 | $5,000 |
Compensation threshold used to determine a qualifying employee under a SEP plan | $750 | $750 |
| Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers: | 2024 | 2025 |
|---|---|---|
1. Covered by an employer-sponsored plan and filing as: | ||
Single/Head of household | $77,000 - $87,000 | $79,000 - $89,000 |
Married filing jointly | $123,000 - $143,000 | $126,000 - $146,000 |
Married filing separately | $0 - $10,000 | $0 - $10,000 |
2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan | $230,000 - $240,000 | $236,000 - $246,000 |
| Income phase-out range for determining ability to fund a Roth IRA for taxpayers filing as: | 2024 | 2025 |
|---|---|---|
Single/Head of household | $146,000 - $161,000 | $150,000 - $165,000 |
Married filing jointly | $230,000 - $240,000 | $236,000 - $246,000 |
Married filing separately | $0 - $10,000 | $0 - $10,000 |
