| | 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 |
|
