2025 Retirement Plan Contribution Limits, Phase-Out Ranges, and Income Limits

The IRS has released 2025 inflation-adjusted contribution limits, phase-out ranges, and income limits for various retirement accounts. (IRS Notice 2024-80)
Contribution Limits
401(k), 403(b), and most 457 plans — For 2025, the amount an individual can contribute to a 401(k), 403(b), and most 457 plans increases to $23,500, up from $23,000 in 2024. The catch-up contribution amount, for employees 50 and older who participate in these plans, remains at the 2024 level of $7,500 (Note: This means participants over 50 can contribute up to $31,000 to one of these plans.
Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
IRAs — For IRAs, the amount an individual can contribute remains $7,000 (unchanged from 2024). The catch-up contribution amount remains $1,000.
SIMPLE IRAs — The amount individuals can contribute to their SIMPLE accounts increases to $16,500 (up from $16,000 in 2024). The catch-up contribution limit for SIMPLE accounts contribution amount remains $3,500.
Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in the SIMPLE IRA plan. For 2025, this higher catch-up contribution limit is $5,250 instead of $3,500.
Phase-out Ranges & Income Limits
In addition, the IRS released new income phase-out ranges for making contributions to a traditional IRA and Roth IRA, as well as the income limit on claiming the Saver’s Credit.
If either the taxpayer or their spouse is covered by a workplace retirement plan during the tax year, the maximum amount they can contribute to a traditional IRA may be reduced (phased out) to zero, depending on the taxpayer’s filing status and income (Note: If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-out rule doesn’t apply).
The traditional IRA phase-out ranges for 2025 are:
- For single taxpayers covered by a workplace retirement plan, the phase-out range begins at $79,000 and ends at $89,000 (up from $77,000 and $87,000 in 2024).
- For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range increases to between $126,000 and $146,000 ($123,000 and $143,000 in 2024).
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range increases to between $236,000 and $246,000 ($230,000 and $240,000 in 2024).
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
The phase-out ranges for Roth IRAs are:
- For singles and heads of household, the phase-out begins at $150,000 and ends at $165,000 (up from between $146,000 and $161,000 in 2024).
- For married couples filing jointly, between $236,000 and $246,000 (up from between $230,000 and $240,000 in 2024).
- For married couples filing separately between $0 and $10,000.
The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) increases to:
- $79,000 for married couples filing jointly, up from $76,500;
- $59,250 for heads of household, up from $57,375; and
- $39,500 for singles and married couples filing separately, up from $38,250.