 |  | | | | | Retirement Planning
Employee/individual contribution
limits| Elective deferral
limits | 2024 | 2025 |
|---|
| 401(k) plans, 403(b) plans, 457(b)
plans, and SAR-SEPs 1 [Includes Roth 401(k) and Roth 403(b)
contributions] | Lesser of $23,000 or 100% of participant's compensation | Lesser of $23,500 or 100% of participant's compensation | | SIMPLE 401(k) plans and SIMPLE IRA
plans1 | Lesser of $16,000 or 100% of participant's compensation | Lesser of $16,500 or 100% of participant's compensation | | SIMPLE 401(k) plans and SIMPLE
IRA plans with 25 or fewer
employees (or those that elect
these higher limits)1 | Lesser of $17,600 or 100% of participant's compensation | Lesser of $17,600 or 100% of participant's compensation | | Starter 401(k) plans and
safe-harbor 403(b) plans | Between 3% and 15% of annual
compensation up to a maximum of
$6,000 ($7,000 if age 50 or older) | Between 3% and 15% of annual
compensation up to a maximum of
$6,000 ($7,000 if age 50 or older) |
1 Must aggregate employee contributions to all 401(k),
403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions
are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation
reduced by elective deferrals (effectively, a 20% maximum contribution). | IRA contribution
limits | 2024 | 2025 |
|---|
| Traditional IRAs | Lesser of $7,000 or 100% of earned income
| Lesser of $7,000 or 100% of earned income
| | Roth IRAs | Lesser of $7,000 or 100% of earned income
| Lesser of $7,000 or 100% of earned income
|
| Additional "catch-up" limits
(individuals age 50 or older) | 2024 | 2025 |
|---|
| 401(k) plans, 403(b) plans, 457(b)
plans, and SAR-SEPs2 | $7,500
| $7,500 | | *Catch-up limit if age 60 to 63 | N/A | $11,250 | | SIMPLE 401(k) plans and SIMPLE IRA
plans | $3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit) | $3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit) | | *Catch-up limit if age 60 to 63 | N/A | $5,250 | | IRAs (traditional and
Roth) | $1,000 | $1,000 |
2 Special catch-up limits may also apply to 403(b) and
457(b) plan participants.
Employer contribution/benefit 3 limits| Defined benefit plan
limits | 2024 | 2025 |
|---|
| Annual contribution limit per
participant | No predetermined limit. Contributions based on amount
needed to fund promised benefits | No predetermined limit. Contributions based on amount needed to fund promised benefits. | | Annual benefit limit per
participant | Lesser of $275,000 or 100% of average compensation for highest 3 consecutive years | Lesser of $280,000 or 100% of average compensation for highest 3 consecutive years |
| Defined contribution
plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans] | 2024 | 2025 |
|---|
| Annual addition limit per participant
(employer contributions; employee pre-tax, after-tax, and Roth contributions;
and forfeitures) (does not apply to SIMPLE IRA plans) | Lesser of $69,000 or 100% (25% for SEP) of participant's compensation | Lesser of $70,000 or 100% (25% for SEP) of participant's compensation | | Maximum tax-deductible employer
contribution [not applicable to 403(b) plans] | 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans
| 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans | | Pension-linked emergency savings
accounts (maximum amount
attributable to employee deferrals) | $2,500 | $2,500 |
3 For self-employed individuals, compensation generally
means earned income. This means that, for qualified plans, deductible
contributions for a self-employed individual are limited to 20% of net earnings
from self-employment (net profits minus self-employment tax deduction), and
special rules apply in calculating the annual additions limit. Compensation
limits/thresholds
| Retirement plan compensation
limits | 2024 | 2025 |
|---|
| Maximum compensation per participant
that can be used to calculate tax-deductible employer contribution (qualified
plans and SEPs) | $345,000 | $350,000 | | Compensation threshold used to
determine a highly compensated employee | $155,000 (when 2024 is the look-back year) | $160,000 (when 2025 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,
$230,000 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 |
| Traditional deductible IRA income
limits — Income phase-out range for determining
deductibility of traditional IRA contributions for
taxpayers covered by an employer-sponsored
plan and filing as: | 2024 | 2025 |
|---|
| Single | $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 |
| Traditional deductible IRA income
limits — Income phase-out range for determining
deductibility of traditional IRA contributions for
taxpayers not covered by an employer-sponsored
retirement plan but filing a: | 2024 | 2025 |
|---|
| Joint return with a spouse who is covered by an
employer-sponsored retirement plan | $230,000 - $240,000 | $236,000 - $246,000 |
| Roth IRA compensation
limits — Income phase-out range for determining
ability to fund Roth IRA for taxpayers filing as: | 2024 | 2025 |
|---|
| Single | $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 |
Qualified charitable distribution
| 2024 | 2025 |
|---|
| Annual amount not includible in gross income | $105,000 | $108,000 | | One-time exclusion for transfer to split-interest entity | $53,000 | $54,000 |
|
| | | | | IMPORTANT DISCLOSURES Philippe E Berthoud and William E. Riquier offer Securities and Advisory Services through United Planners Financial Services, Member FINRA/SIPC. United Planners and The Retirement Financial Center are independent companies. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
This communication is strictly intended for individuals residing in the state(s) of AZ, CA, CO, CT, FL, GA, ME, MD, MA, MT, NV, NH, NJ, NY, VA and WA. No offers may be made or accepted from any resident outside the specific states referenced. | | Prepared by Broadridge Advisor Solutions Copyright 2025. |
| |
