IRA and Retirement Plan Limits for 2025
IRA and Retirement Plan Limits for 2025
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Many IRA and retirement plan limits are indexed for inflation each year. While some of the limits remain unchanged for 2025, other key numbers have increased.
IRA contribution limits
The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2025 remains $7,000 (or 100% of your earned income, if less). The maximum catch-up contribution for those age 50 or older remains $1,000. You can contribute to both a traditional IRA and a Roth IRA in 2025, but your total contributions cannot exceed these annual limits.
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Income limits for deducting traditional IRA contributions
If you (or if you’re married, both you and your spouse) are not covered by an employer retirement plan, your contributions to a traditional IRA are generally fully tax deductible. If you’re married, filing jointly, and you’re not covered by an employer plan but your spouse is, your deduction is limited if your modified adjusted gross income (MAGI) is between $236,000 and $246,000, and eliminated if your MAGI is $246,000 or more.
| If your 2025 federal income tax filing status is: | Your IRA deduction is limited if your MAGI is between: |
Your deduction is eliminated if your MAGI is: |
|---|---|---|
| Single or head of household | $79,000 and $89,000 | $89,000 or more |
| Married filing jointly or qualifying widow(er) |
$126,000 and $146,000 (combined) |
$146,000 or more (combined) |
| Married filing separately | $0 and $10,000 | $10,000 or more |
If your filing status is single or head of household, you can fully deduct your IRA contribution up to $7,000 ($8,000 if you are age 50 or older) in 2025 if your MAGI is $79,000 or less. If you’re married and filing a joint return, you can fully deduct up to $7,000 ($8,000 if you are age 50 or older) if your MAGI is $126,000 or less.
Income limits for contributing to a Roth IRA
The income limits for determining how much you can contribute to a Roth IRA have also increased from 2024.
|
If your 2025 federal income tax |
Your Roth IRA contribution is limited if your MAGI is: |
You cannot contribute to a Roth IRA if your MAGI is: |
|---|---|---|
| Single or head of household | More than $150,000 but less than $165,000 |
$165,000 or more |
| Married filing jointly or qualifying widow(er) |
More than $236,000 but less than $246,000 (combined) |
$246,000 or more (combined) |
| Married filing separately | More than $0 but less than $10,000 |
$10,000 or more |
If your filing status is single or head of household, you can contribute the full $7,000 ($8,000 if you are age 50 or older) to a Roth IRA if your MAGI is $150,000 or less. And if you’re married and filing a joint return, you can make a full contribution if your MAGI is $236,000 or less. Again, contributions can’t exceed 100% of your earned income.
Employer retirement plan limits
The maximum amount you can contribute (your “elective deferrals”) to a 401(k) plan is $23,500 in 2025, increased from 2024. This limit also applies to 403(b) and 457(b) plans, as well as the Federal Thrift Plan. If you’re age 50 or older, you can also make catch-up contributions of up to $7,500 to these plans in 2025. [Special catch-up limits apply to certain participants in 403(b) and 457(b) plans.] The amount you can contribute to a SIMPLE IRA or SIMPLE 401(k) is $16,500 in 2025, and the catch-up limit for those age 50 or older remains $3,500.
| Plan type: | Annual dollar limit: | Catch-up limit: |
|---|---|---|
| 401(k), 403(b), governmental 457(b), Federal Thrift Plan |
$23,500 | $7,500 |
| SIMPLE plans | $16,500 | $3,500 |
Note: Contributions can’t exceed 100% of your income.
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