 |  |
1 Must aggregate employee deferrals to all
401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers; 457(b)
contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of
compensation reduced by elective deferrals (effectively a 20% maximum
contribution).
2 Special catch-up limits may also apply to
403(b) and 457(b) plan participants.
|
|
Retirement Planning Key Numbers
Certain retirement plan and IRA limits rose for 2025. These tables offer an overview of the changes.
|
Elective deferral limits
|
2024 |
2025 |
| 401(k) plans, 403(b) plans, 457(b) plans, and
SAR-SEPs1 (includes Roth contributions) |
Lesser of $23,000 or 100% of compensation
($30,500 if age 50 or older)2 |
Lesser of $23,500 or 100% of compensation
($31,000 if age 50 or older; $34,750 if age 60 to 63)2 |
| SIMPLE 401(k) plans and SIMPLE IRA plans1 |
Lesser of $16,000 or 100% of compensation
($19,500 if age 50 or older) |
Lesser of $16,500 or 100% of compensation
($20,000 if age 50 or older; $21,750 if age 60 to 63) |
| 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 compensation ($21,450 if age 50 or older) | Lesser of $17,600 or 100% of compensation ($21,450 if age 50 or older; $22,850 if age 60 to 63) | | 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) |
|
IRA contribution limits
|
2024 |
2025 |
| Traditional and Roth IRAs
|
Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or
older)
|
Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or
older) |
|
Defined benefit plan annual benefit limits
|
2024 |
2025 |
| Annual benefit limit per participant
|
Lesser of $275,000 or 100% of average compensation for highest
three consecutive years
|
Lesser of $280,000 or 100% of average compensation for highest
three consecutive years
|
|
Defined contribution plan limits [qualified plans,
403(b) plans, and SEP plans] |
2024 |
2025 |
| Annual addition limit per participant (employer contributions;
employee pre-tax, after-tax, and Roth contributions; and forfeitures)
|
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
|
| Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals) | $2,500 | $2,500 |
| Retirement plan compensation limits |
2024 |
2025 |
| Maximum compensation per participant that can be used to
calculate tax-deductible employer contribution (qualified plans/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
|
| Income phase-out range for determining deductibility of
traditional IRA contributions for taxpayers:
|
2024 |
2025 |
|
1. Covered by an employer-sponsored plan and filing
as:
|
|
|
|
Single/Head of household
|
$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
|
|
2. Not covered by an employer-sponsored retirement
plan, but filing joint return with a spouse who is covered by a plan
|
$230,000 - $240,000
|
$236,000 - $246,000
|
| Income phase-out range for determining ability to fund a Roth
IRA for taxpayers filing as: |
2024 |
2025 |
|
|
|
Single/Head of household
|
$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
|
|
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