IRS Announces 2025 Retirement Contribution Limits

01/02/2025 | Blogs

The Internal Revenue Service (IRS) announced 2025 retirement plan contribution limit adjustments.

Employee 401(k) contributions:

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:

Employee and employer deferrals into 457(b) plans:

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.

IRA contributions:

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.