Article
2025 retirement plan contribution limits
Wealth management
Nov 13, 2024 · Authored by Matt Payne, David DuBrava
Review the tables below to understand the 2025 retirement plan limits and IRS cost of living adjustments.
Questions?
Retirement plan limits
| Retirement plans | 2025 | 2024 | 2023 |
| Elective deferrals (401k and 403b plans) | $23,500 | $23,000 | $22,500 |
| Annual benefit limit (defined benefit plan) | $280,000 | $275,000 | $265,000 |
| Annual contribution limit | $70,000 | $69,000 | $66,000 |
| Annual compensation limit | $350,000 | $345,000 | $330,000 |
| 457 deferral limit | $23,500 | $23,000 | $22,500 |
| Highly compensated threshold | $160,000 | $155,000 | $150,000 |
| SIMPLE contribution limit | $16,500 | $16,000 | $15,500 |
| SEP compensation amount | $750 | $750 | $750 |
| SEP compensation limit | $350,000 | $345,000 | $330,000 |
| Income to Social Security | $176,100 | $168,600 | $160,200 |
| Catch-up contributions* | $7,500 | $7,500 | $7,500 |
| SIMPLE catch-up contributions | $3,500 | $3,500 | $3,500 |
- Elective deferral limit: The maximum amount an individual can contribute on a pre-tax basis to a 401(k) or 403(b) plan.
- Annual benefit limit: The maximum annual benefit that can be paid to a participant under a defined benefit plan (IRC section 415). The limit is the lesser of either the dollar amount above or 100% of the participant's average compensation. The participant compensation level is also subjected to the annual compensation limit.
- Annual contribution limit: The maximum annual contribution amount allowed to be made to a participant's account (IRC section 415). The limit is either the lesser of the dollar limit or 100% of the participant's compensation, applied to the combination of employee contributions, employer contributions and forfeitures allocated to a participant's account.
- Annual compensation limit: When allocating contributions, a plan cannot consider any employee compensation above this limit. Pertaining to nondiscrimination tests, all participant compensation is also limited to this amount.
- 457 deferral limit: A similar restriction to elective deferral limits, but applied to certain government plans under IRC Section 457.
- Highly compensated threshold (section 414(q)(1)(B)): The minimum compensation level established to determine highly compensated employees for purposes of nondiscrimination testing.
- SIMPLE contribution limit: The maximum annual contribution allowed to be made to a SIMPLE (Savings Incentive Match Plan for Employees) plan. SIMPLE plans are simplified retirement plans for small businesses that allow employees to make elective contributions, while requiring employers to make matching or non-elective contributions.
- SEP coverage limit: The minimum earning level for self-employed individuals to qualify for coverage under a Simplified Employee Pension plan, which is a special individual retirement account for employers to make direct tax-deductible contributions.
- SEP compensation limit: The limit used to determine the maximum contributions allowed to a SEP plan.
- Catch-up contributions, SIMPLE catch-up deferral: Under the Economic Growth and Tax Relief Act of 2001 (EGTRRA), certain individuals aged 50 or over are eligible to make catch-up contributions. *Effective 1/1/2025, employees aged 60–63 (born 1962–1965) can make enhanced catch-up contributions of 150% of the regular $7,500 catch-up limit, totaling $11,250. This raises the maximum employee contribution for 2025 to $34,750.
IRA cost-of-living adjustments
| Traditional IRA | 2025 | 2024 | 2023 |
| Traditional IRA regular contribution limit | $7,000 | $7,000 | $6,500 |
| Age 50 catch-up limit for traditional IRAs | $1,000 | $1,000 | $1,000 |
| AGI phase-out ranges for determining traditional IRA deductions for active participants: | |||
| Unmarried taxpayers | $79,000 - $89,000 | $77,000 - $87,000 | $73,000 - $83,000 |
| Married taxpayers filing joint returns | $126,000 - $146,000 | $123,000 - $143,000 | $116,000 - $136,000 |
| Married taxpayers filing separate returns | $0 - $10,000 | $0 - $10,000 | $0 - $10,000 |
| Non-active participant spouse | $236,000 - $246,000 | $230,000 - $240,000 | $218,000 - $228,000 |
| Roth IRA | 2025 | 2024 | 2023 |
| Roth IRA regular contribution limit | $7,000 | $7,000 | $6,500 |
| Age 50 catch-up limit for Roth IRAs | $1,000 | $1,000 | $1,000 |
| AGI phase-out ranges for determining Roth IRA regular contributions: | |||
| Unmarried taxpayers | $150,000 - $165,000 | $146,000 - $161,000 | $138,000 - $153,000 |
| Married taxpayers filing joint returns | $236,000 - $246,000 | $230,000 - $240,000 | $218,000 - $228,000 |
| Married taxpayers filing separate returns | $0 - $10,000 | $0 - $10,000 | $0 - $10,000 |
| Flexible Spending Account (FSA) | 2025 | 2024 | 2023 |
| Employee contribution limit for health and limited FSA | $3,300 | $3,200 | $3,050 |
| Medical FSA rollover | $660 | $640 | $610 |
| Dependent care assistance account employee contribution limit: | |||
| Single or married filing a joint return | $5,000 | $5,000 | $5,000 |
| Single or married filing a separate return | $2,500 | $2,500 | $2,500 |
| Monthly limit for parking/transit and vanpool | $325/$325 | $315/$315 | $300/$300 |
| Health Savings Account (HSA) | 2025 | 2024 | 2023 |
| HSA maximum contribution | |||
| Self-only coverage | $4,300 | $4,150 | $3,850 |
| Family coverage | $8,550 | $8,300 | $7,750 |
| Age 55 HSA catch-up contribution | $1,000 | $1,000 | $1,000 |
| High deductible health plan (HDHP) | |||
| Annual deductible – single | $1,650 | $1,600 | $1,500 |
| Annual deductible – family | $3,300 | $3,200 | $3,000 |
| Maximum out-of-pocket – single | $8,300 | $8,050 | $7,500 |
| Maximum out of pocket – family | $16,600 | $16,100 | $15,000 |
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