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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) |
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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) |
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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
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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
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| 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:
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| 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
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$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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IMPORTANT DISCLOSURES 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. |
| Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2025. |
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