...... 2025 Retirement Contribution Limits | White Wolf CPA
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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 Types

  • Traditional IRA / Roth IRA

  • SEP IRA

  • 401(k), 403(b), 457(b)

  • 401(k) Ages 60–63

  • Defined Benefit Plan

Under Age 50 Limits

  • $7,000 (Traditional IRA / Roth IRA)

  • Up to $70,000 (SEP IRA)

  • $23,500 (401(k), 403(b), 457(b))

  • $23,500 (401(k) Ages 60–63)

  • N/A (Defined Benefit Plan)

Age 50+ Catch-Up

  • $1,000 (Traditional IRA / Roth IRA)

  • N/A (SEP IRA)

  • $7,500 (401(k), 403(b), 457(b))

  • $11,250 (401(k) Ages 60–63)

  • N/A (Defined Benefit Plan)

Total (50+) Limits

  • $8,000 (Traditional IRA / Roth IRA)

  • N/A (SEP IRA)

  • $31,000 (401(k), 403(b), 457(b))

  • $34,750 (401(k) Ages 60–63)

  • $280,000 annual benefit (Defined Benefit Plan)

Notes

  • Combined limit for both accounts

  • SEP IRA: Contributions limited to the lesser of 25% of compensation or $70,000 for 2025

  • 401(k), 403(b), 457(b): Employee salary deferrals

  • 401(k) Ages 60–63: Enhanced catch-up under SECURE 2.0

  • Defined Benefit Plan: Based on 3-year average compensation

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.

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

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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