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Writer's pictureKyle Rolek, Retirement Planning Specialist
Nov 152 min read

Changes to Retirement Account Contribution Limits for 2025



The IRS has announced updates to retirement account contribution limits for 2025, reflecting cost-of-living adjustments and new provisions under the SECURE 2.0 Act.


Here’s what savers need to know:


401(k) and 403(b) Plans:


  • Contribution Limit: The maximum contribution for 401(k), 403(b), most 457 plans, and the Federal Thrift Savings Plans increases to $23,500, up from $23,000 in 2024.


  • Catch-Up Contributions: Workers aged 50 and older can still make additional contributions of $7,500. However, for those aged 60-63, a higher catch-up contribution limit of $11,250 applies, reflecting SECURE 2.0 enhancements.


Traditional and Roth IRA Contribution Limits:


  • The annual contribution limit remains steady at $7,000.


  • For individuals aged 50 and older, the catch-up contribution remains an additional $1,000 (for a total of $8,000).


Roth IRA Income Limitations:


  • Single filers with modified adjusted gross income (MAGI) below $150,000 (up from $146,000 in 2024) are eligible to make full contributions, with a phase-out range up to $165,000.


  • Married couples filing jointly with modified adjusted gross income (MAGI) below $236,000 (up from $230,000 in 2024) are eligible to make full contributions, with a phase-out range up to $246,000.


Automatic Enrollment for 401(k) Plans:


  • Starting in 2025, new 401(k) plans must implement automatic enrollment, beginning at 3%-10% of pay, with annual increases up to a cap of 15%.


  • Employees retain the ability to opt out or adjust contributions.


These changes provide opportunities for retirement savers to increase their contributions and take advantage of expanded catch-up options as they approach retirement age.


For more detailed information, consult resources like the IRS guidelines or your Certified Financial Planner.


Want To Discuss This Individually?


1 - For clients: Call or email me any time as always.


2 - For non-clients: Complete the form on the website to request a retirement planning consultation: www.rolekretirement.com



This is article is for informational purposes only and should not be considered as tax or legal advice. Advice is only provided after entering into an Advisory Agreement with the Advisor. See other disclosure here: Disclosures

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Article Disclosures

 

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If you have any questions regarding our disclosures, please contact us at 267-427-5667 or kyle.rolek@rolekretirement.com

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