2025 Contribution Limits

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Even though it doesn’t feel like it sometimes, most contribution limits are indexed to inflation.

As always, we recommend updating your contributions to meet these new maximums.

If you are stretched thin and are thinking, “I can’t afford to save more!” You might appreciate reading our articles “Fund Your Roth IRA Even When You Can’t Afford It” and “How to Convert Taxable Savings Into Your Roth IRA.”

A Roth IRA can actually make a great place to store your emergency fund. Even though it is a retirement account, Roth IRAs have the special provision that you can always withdraw the amount you contributed for any reason and at any age. If you have the free cash, fully funding your Roth IRA is normally the right decision.

Another helpful read might be our Account Funding Priorities series to determine the design of your own savings waterfall plan.

 

 

Tax Year 2025
Account Type Requirements Contribution Limit More Reading
Traditional or Roth IRA Contribution

(subject to phaseouts, limited by wages)

 Age 49 and under $7,000 Should I Fund a Roth or a Traditional Account?

Do Large Roth Conversions Require Backdoor Roth Contributions?

Change from 2024:
No change to the contribution limit from last year.
Catch-up contribution stays at $1,000
Age 50 and over $8,000
401(k) or 403(b) plans

Employee Elective Deferral

 Age 49 and under $23,500 Choosing Between Your Employee Retirement Account Options

Is Funding My 401(k) Match Sufficient to Fund My Retirement?

Change from 2024:
+$500 to the elective deferral
Catch-up contribution remains at $7,500
New catch-up contribution for ages 60-63 of $11,250 (150% of Catch-up)
Age 50 to Age 59 $31,000
Age 60 to Age 63 $34,750
Age 64 and over $31,000
457(b) plans

Employee Deferred Compensation

 Age 49 and under $23,500 There also may be special 457(b) catch-up contributions when you are 3 years prior to the plan’s specified retirement age.

Change from 2024:
+$500 to the elective deferral
Catch-up contribution remains at $7,500
New catch-up contribution for ages 60-63 of $11,250 (150% of Catch-up)
Age 50 to Age 59 $31,000
Age 60 to Age 63 $34,750
Age 64 and over $31,000
SIMPLE 401(k) or IRA Plan

Employee Elective Deferral
(with further limitations)

 Age 49 and under $16,500 Change from 2024:
+$500 to the elective deferral
Catch-up contribution remains at $3,500
New catch-up contribution for ages 60-63 of $5,250 (150% of Catch-up)
Age 50 to Age 59 $20,000
Age 60 to Age 63 $21,750
Age 64 and over $20,000
SEP IRA Employer Contribution

401(k), 403(b), or 457 plans Employer Contribution

 The smaller of: $70,000

or 25% of compensation

 Can I Contribute to Both a SEP and a 401(k)?

Individual 401(k) Elective Deferral Limits and Deadlines

Service: Retirement Plan Management

For 401(k), 403(b), or 457 plans, the total is brought to $77,500 with age 50 catch-up or $81,250 with the age 60-63 catch-up. The SEP IRA does not have a catch-up.

Change from 2024:
+$1,000 to the limitation for defined contribution plans
Pension-Linked Emergency Savings Account (ESA) The portion of the account attributable to participant contributions cannot exceed: $2,500 Contribution limit can be made smaller by the plan sponsor.

Only available to non-highly compensated employees.

Change from 2024:
No change to the limit from last year.
Health Savings Account (HSA) Contribution Single Plan Age 54 and under $4,300 When Should You Stop Funding Your HSA?

When Partial-Year HSA Contribution Limits Don’t Apply

A Guide to HSA Qualified Medical Expenses, Contributions, and Family Plans with Adult Children

Service: Health Savings Account Advice

Change from 2024:
+$150 to base single contribution limit
+$250 to base family contribution limit
Age 55 and over $5,300
Family Plan Age 54 and under $8,550
Age 55 and over $9,550
Other Spouse Catch-Up Age 54 and under +$0 Both Spouses Can Make The HSA Catch-Up Contribution

Catch-up contribution remains at $1,000
Age 55 and over +$1,000
Annual Gift Exclusion Per Donee / Donor Combination $19,000 Gifts, Taxes, and IRS Form 709

Annual Exclusion From Gift Taxes

IRS: Frequently Asked Questions on Gift Taxes

Change from 2024:
+$1,000 to the annual limit
Qualified Charitable Distribution (QCD) IRA Owner Having Attained Age 70 1/2 $108,000 Qualified Charitable Distributions (QCDs)

QCD Limitation Starts Inflation-Adjusting in 2024 (Secure 2.0)

Change from 2024:
+$3,000 to the aggregate amount

 

You can find the current contribution limits here: Account Contribution Limits
and the IRS page on the same topic here: Retirement Topics – Contributions

Featured Image by Melissa Walker Horn on Unsplash

Related Articles

  1. 2024 Contribution Limits
  2. 2019 Contribution Limits
  3. 2020 Contribution Limits
  4. 2022 Contribution Limits
  5. 2021 Contribution Limits

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Chief Operating Officer, CFP®, APMA®

Megan Russell has worked with Marotta Wealth Management most of her life. She loves to find ways to make the complexities of financial planning accessible to everyone. She is the author of over 800 financial articles and is known for her expertise on tax planning.