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Let your 2025 retirement planning begin. In 2025, you can contribute up to $23,500 to a 401(k) retirement plan and up to $7,000 to a traditional or Roth individual retirement account (IRA). People 50 years of age and older can add catch-up contributions of $7,500 to their 401(k) plans and $1,000 to their IRAs. Also, new for 2025, people ages 60 to 63 can make "super" catch-up contributions of $11,250 to their employer-based retirement plans.
The IRS has made additional adjustments to Roth IRA income eligibility, traditional IRA deduction limits, SIMPLE IRA contribution limits and more. Here's what you need to know about new retirement rules in 2025.
401(k) Contribution Limits for 2025
The IRS has adjusted the contribution limit for 401(k), 403(b), governmental 457 and the federal government's Thrift Savings plans to $23,500, up from $23,000 in 2024. The catch-up contribution for people ages 50 and older remains at $7,500. Here's a quick summary:
- 2025 contribution limit (49 and under): $23,500
- 2025 catch-up contribution (50 and older): $7,500
- 2025 total contribution limit (50 and older): $31,000
New Super Catch-Up Contributions for Ages 60 to 63
New for 2025: 401(k) contribution limits for people ages 60 to 63 are super-sized. If you are 60, 61, 62 or 63 in 2025, you can contribute an additional $11,250 to an employer-based 401(k), 403(b), 457 or (most) governmental thrift programs for a total contribution of $34,750.
- 2025 super catch-up contribution for ages 60, 61, 62 and 63: $11,250
- 2025 total contribution limit for ages 60, 61, 62 and 63: $34,750
401(k) Contribution Limits With Matching Funds
Matching funds from your employer don't count toward your basic $23,500 retirement plan contribution limit. However, the IRS does limit the total amount you can contribute to all retirement plans with a single employer, including matching funds:
- 2025 total contributions (49 and under): $70,000
- 2025 total contributions (50 and older): $77,500
- 2025 total contributions (60 to 63): $81,250
Your 401(k) contribution(s) also can't total up to more than 100% of your compensation.
IRA Contribution Limits for 2025
Contributions to a traditional or Roth IRA are limited to $7,000 in 2025, with a $1,000 catch-up contribution for people ages 50 and older. This contribution limit is unchanged from 2024. If you're thinking about opening an IRA or making a contribution, remember that your contribution also can't exceed your total taxable income for the year. The contribution limit applies to your combined contributions across all traditional and Roth IRA accounts.
- 2025 IRA contribution limit (49 and under): $7,000
- 2025 catch-up contribution (50 and older): $1,000
- 2025 total contribution limit (50 and older): $8,000
SIMPLE IRA Contribution Limits for 2025
SIMPLE IRAs have a 2025 contribution limit of $16,500 with a $3,500 catch-up contribution for people ages 50 and older. If you're between ages 60 and 63, your catch-up contribution is $5,250 for a total SIMPLE IRA contribution of $21,750.
SIMPLE IRA plans are for small businesses and their employees. They typically have higher contribution limits than regular IRAs.
Roth IRA Income Limits for 2025
To make a Roth IRA contribution, you have to fall within IRS income requirements. If your adjusted gross income exceeds the limits outlined in the chart below, the amount you're eligible to contribute begins phasing out.
| Roth IRA Income Limits for 2025 | |||
|---|---|---|---|
| Full Contribution | Partial Contribution | No Contribution | |
| Married, filing jointly | Less than $236,000 | $236,000 to $245,999 | $246,000 and up |
| Married, filing separately and living with spouse | Not applicable | Less than $10,000 | $10,000 and up |
| Single, head of household or married filing separately and did not live with spouse during the year | Less than $150,000 | $150,000 to $164,999 | $165,000 and up |
Source: IRS
Traditional IRA Deduction Limits
You can contribute to both a traditional IRA and a retirement plan at work, but your contribution may not be fully deductible if your income exceeds IRS limits. These limits apply if you contribute to an employer-based retirement plan, or if your spouse does. If neither you nor your spouse participate in a 401(k) or other employer-based retirement plan, income restrictions don't apply to you.
In 2025, IRA deduction limits have been adjusted for inflation, as shown below.
| 2025 Traditional IRA Deduction Limits | |||
|---|---|---|---|
| Full Deduction | Partial Deduction | No Deduction | |
| Single or head of household and covered by a workplace plan | Less than $79,000 | $79,000 to $89,000 | Over $89,000 |
| Married filing jointly and you are covered by a workplace plan | Less than $126,000 | $126,000 to $146,000 | Over $146,000 |
| Married filing jointly and your spouse is covered by a workplace plan | Less than $230,000 | $236,000 to $246,000 | Over $246,000 |
| Married filing separately and covered by a workplace plan | Not available | $0 to $10,000 | $10,000 and up |
Source: IRS
Frequently Asked Questions
Knowing exactly how much to save for retirement can be tricky since it's hard to predict your long-term expenses and how long you'll live. Still, consider these general rules for retirement planning when you're trying to decide how much to contribute:
- Max out your employer match. If your employer matches your retirement contributions, partially or dollar-for-dollar, you'll see a return on your investment right away—on top of any investment returns you get over time.
- Aim for 15% of your income. Some experts recommend setting aside 15% of your income as a baseline goal, year over year, to increase your odds of saving enough for retirement.
- Start early. A single dollar invested at age 22 could be worth $148 at age 67, even at a modest return of 6% per year.
- Save what you can. Don't let the perfect be the enemy of the good. If you can't set aside 15% now, save as much as you can and aim to increase your contribution over time.
Contributing too much to an IRA or 401(k) plan can trigger additional taxes. Any excess contributions you make, plus the interest or gains they accumulate, are taxed at 6% per year for each year the money remains in your retirement account.
You can avoid paying the 6% tax by withdrawing your excess contributions, along with any earnings they've generated, before the due date for individual tax returns, on or about April 15 of the following year. Be aware: To receive these funds by the April 15 deadline, you should ideally request them a month or more in advance.
Ask your 401(k) plan administrator or IRA provider for a corrective distribution that includes the excess money you contributed and the interest or appreciation you earned on it. You should receive Form 1099-R, which shows how much income you generated when you took out your excess contribution so you can add it to your taxable income.
The IRS reviews more than 60 tax provisions each year for inflation, including the value of retirement plan contribution limits, standard deductions and tax credit qualifications. When the cost of living increases substantially, retirement contribution limits are likely to increase. In years when the cost of living remains relatively stable, fewer (or smaller) annual adjustments are likely to happen. In 2025, for example, IRA contribution limits and catch-up contributions for 401(k) plans remained the same as they were in 2024.
The Bottom Line
The IRS typically releases new contribution limits late in the prior year to allow savers to review their retirement plans and adjust contributions for the new year to come. Annual IRS adjustments can help you keep pace with inflation by maximizing your retirement contributions and getting to your savings goals faster.