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2025 Retirement Contribution Limits

Maximize your savings with the latest IRS updates
Updated by White Wolf CPA | May 2025

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Contribution Limits Overview

Plan Type                                     Under Age 50 Limit      Age 50+ Catch-Up      Total (50+) Limit                  Notes

Traditional IRA / Roth IRA       $7,000                            $1,000$                          8,000                                    Combined limit for both                                                                                                                                                                                             accounts

SEP IRA                                       Up to $70,000               N/A                               N/A                                     Employer contributions only;                                                                                                                                                                                     up to 25% of compensation

401(k), 403(b), 457(b)                   $23,500                           7,500                              $31,000                                Employee salary deferrals

401(k) Ages 60–63                        $23,500                          $11,250                            $34,750                                Enhanced catch-up under                                                                                                                                                                                             SECURE 2.0

Defined Benefit Plan                    N/A                              N/A                               $280,000 annual benefit     Based on 3-year average                                                                                                                                                                                               compensation

Note: SEP IRA contributions are limited to the lesser of 25% of compensation or $70,000 for 2025.

Key Highlights

  • IRA & Roth IRA: The combined annual contribution limit remains at $7,000, with an additional $1,000 catch-up for those aged 50 and over.

  • Roth IRA Income Limits:

    • Single Filers: Full contribution allowed if Modified Adjusted Gross Income (MAGI) is under $150,000; phased out up to $165,000.

    • Married Filing Jointly: Full contribution allowed if MAGI is under $236,000; phased out up to $246,000.

    • 401(k) & Similar Plans: Employee deferral limit increases to $23,500. Individuals aged 50 and over can contribute an additional $7,500. Those aged 60–63 are eligible for an enhanced catch-up contribution of $11,250, bringing their total potential contribution to $34,750.

  • SEP IRA: Employers can contribute up to 25% of an employee's compensation, not exceeding $70,000 for 2025.

  • Defined Benefit Plans: The maximum annual benefit limit increases to $280,000.

White Wolf CPA Tips

  • Self-Employed Individuals: Consider a Solo 401(k) or SEP IRA to maximize retirement contributions.

  • High Earners: Evaluate the benefits of a Defined Benefit Plan for significant tax-deferred growth.

  • Age 60–63: Take advantage of the enhanced catch-up contributions to boost your retirement savings.JPMorgan Chase+1IRS+1

  • Roth IRA Eligibility: Monitor your MAGI to ensure eligibility for Roth IRA contributions.

Download: 2025 Retirement Contribution Limits Guide (PDF)​

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