What Are the 401K Contribution Limits in 2025?

The Internal Revenue Service has released new limits for the coming year.

 Individual Retirement Accounts (IRAs)

 IRA contribution limits remain unchanged in 2025 at $7,000. Catch-up contributions for those over age 50 also remain at $1,000, for a total limit of $8,000.

 Roth IRAs

The income phase-out range for Roth IRA contributions increases to $150,000-$165,000 for single filers and heads of household, a $4,000 increase. For married couples filing jointly, the phase-out will be $236,000 to $246,000, a $6,000 increase. Married individuals filing separately see their phase-out range remain at $0-10,0000.

Workplace Retirement Account

Those with 401(k), 403(b), 457 plans, and similar accounts will see a $500 increase for 2025, the limit rising to $23,500. Those aged 50 and older will still be able to contribute an extra $7,500, bringing their total limit to $31,000.

 SIMPLE Account

A $500 increase in limits for 2025 gives individuals contributing to this incentive match plan a $16,500 stoplight.

Keep in mind that we provide updates for informational purposes only, so consult with your tax professional before making any changes to your tax strategy. You can also contact us, and we can provide you with information about the pending changes. Visit our website!