2025 Retirement Plan Contribution Limits

8-minute read | Jan 6, 2025

Certain retirement plan and IRA limits are indexed for inflation each year, and 2025 saw increases in many figures. Some of the key numbers are listed below, with the corresponding limit for 2024. (The source for the 2025 numbers is IRS Notice 2024-80.)

Elective deferral limits20242025
401(k) plans, 403(b) plans, 457(b)
plans, and SAR-SEPs1
(includes
Roth contributions)
Lesser of $23,000 or 100% of participant’s compensation ($30,500 if age 50 or older)2Lesser of $23,500 or 100% of participant’s compensation ($31,000 if age 50 or older)2
SIMPLE 401(k) plans and SIMPLE IRA plans1Lesser of $16,000 or 100% of participant’s compensation ($19,500 if age 50 or older)Lesser of $16,500 or 100% of participant’s compensation ($20,000 if age 50 or older)
IRA contribution limits:20242025
Traditional and Roth IRAsLesser 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:20242025
Annual benefit limit per participantLesser of $275,000 or 100% of average compensation for highest three consecutive yearsLesser 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]:20242025
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 compensationLesser of $70,000 or 100% (25% for SEP) of participant’s compensation
Retirement plan compensation limits:20242025
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)$155,000 (when 2024 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
$220,000 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:20242025
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:20242025
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

 

 

Share This Post

Schedule a Free Homebuyer Planning Session

Fill out the form below and one of our Mortgage Advisors will get back to you within 1-2 business days. Their recommendations come with no obligation.

Schedule a Free Homebuyer Planning Session

Fill out the form below and one of our Mortgage Advisors will get back to you within 1-2 business days. Their recommendations come with no obligation.

Schedule a Free Mortgage Review Session

Fill out the form below and one of our Mortgage Advisors will get back to you within 1-2 business days. Their recommendations come with no obligation.

Schedule a Call

Select your state below to schedule a call with the Salal Dealer Direct representative in your region.