The Internal Revenue Service (IRS) announced 2025 retirement plan contribution limit adjustments.
401(k) and 403(b) Plans
Employee 401(k) contributions:
- 2025: $23,500 (up $500 from 2024)
The catch-up contribution limit for Plan participants aged 50 or older remains at $7,500 for the 2025 tax year.
SECURE 2.0 added an additional catch-up contribution to those 60 to 63 of $3,750.
Employer plus employee contributions:
- 2025: $70,000 (up $1,000 from 2024)
457(b) Plans
Employee and employer deferrals into 457(b) plans:
- 2025: $23,500 (up $500 from 2024)
The age 50 catch-up contribution limit for participants in 457(b) plans remains at $7,500 for the 2025 tax year.
SECURE 2.0 added an additional catch-up contribution to those 60 to 63 of $3,750.
Individual Retirement Accounts (IRA)
IRA contributions:
- 2025: Remains at $7,000
The age 50 catch-up for IRA contributions remains at $1,000 for the 2025 tax year.
Traditional IRA Eligibility
Income ranges for determining eligibility to deduct contributions from a traditional IRA:
| Phase-Out Range Description | 2025 | Change |
|
Single taxpayers covered by a workplace retirement plan |
Between $79,000 and $89,000 | Up $2,000 |
| Married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan | Between $126,000 and $146,000 | Up $3,000 |
| Married couples filing jointly if the IRA contributor is not covered by a workplace retirement plan and is married to someone who is covered | Between $236,000 and $246,000 | Up $6,000 |
| Married individual filing in a separate return who is covered by a workplace retirement plan | Between $0 and $10,000 | No change |
Roth IRA Eligibility
Income ranges for determining eligibility to deduct contributions from a Roth IRA:
| Phase-Out Range Description | 2025 | Change |
| Single or head of household taxpayers | Between $150,000 and $165,000 | Up $4,000 |
| Married couples filing jointly | Between $236,000 and $246,000 | Up $6,000 |
| Married individual filing in a separate return who makes contributions to a Roth IRA | Between $0 and $10,000 | No change |
We'll continue to monitor and communicate regulatory changes to help you succeed in benefits management.
This blog is up to date as of November 2024 and has not been updated for changes in the law, administration or current events.
