Retirement Plan Contribution Limits in 2025

2025 Retirement Plan Contribution Limits

1. 401(k), 403(b), and 457(b) Plans

• Employee Contributions: Up to $23,500 (under age 50)
  Catch-up contribution: $7,500 (ages 50+), total $31,000; higher catch-up ($11,250) for ages 60–63
• Total Combined Limit (Employee + Employer): $70,000 ($77,500 if ages 50+)/li>
• Roth Options: Available for 401(k), sometimes for 403(b) and 457(b)

Plan Details:

• 401(k): Primarily for for-profit companies; includes Roth (after-tax) options.
• 403(b): For public schools and nonprofits; Roth-style options less common.
• 457(b): For state/local government and some tax-exempt organizations; Roth availability varies.

2. Solo 401(k) and SEP IRA

• Solo 401(k): For self-employed individuals/business owners without employees.
  • Employee contributions: $23,500, plus $7,500 catch-up (ages 50+); $11,250 catch-up for ages 60–63
  • Employer contributions: up to 25% of compensation
  • Total combined limit: $70,000 or 25% of compensation, whichever is less
• SEP IRA: Employer contributes up to 25% of compensation, up to $70,000. No catch-up contribution.

3. SIMPLE IRA

• Employee contribution: up to $16,500
• Catch-up contribution: $3,500 (50+), higher catch-up $5,250 (ages 60–63)
• Employer must match dollar-for-dollar up to 3% of employee salary
• Immediate vesting

4. Traditional and Roth IRAs

• Annual contribution: $7,000
• Catch-up: additional $1,000 (50+)
• Traditional IRA: pre-tax contributions, taxable upon withdrawal
• Roth IRA: after-tax contributions, tax-free withdrawals

5. Thrift Savings Plan (TSP)

• Federal and uniformed services employees only
• Employee contributions: up to $23,500 (under age 50), plus catch-ups ($7,500 at 50+, $11,250 for ages 60–63)
• Employer matches up to 5% of salary
• Total Combined Limit (Employee + Employer): $70,000
• Pre-tax (traditional) and Roth contributions allowed

6. Payroll Deduction IRA

• Annual limit: $7,000; catch-up of $1,000 (age 50+)
• Pre-tax or Roth contributions
• No employer matching

7. Health Savings Account (HSA)

• Individual coverage: $4,300; Family coverage: $8,550
• Catch-up contribution: additional $1,000 for age 55+
• Must have a high-deductible health plan
• Tax-free growth; penalty-free medical withdrawals; penalty-free non-medical withdrawals after age 65 (taxable)

8. Self-Directed IRA (SDIRA)

• Contribution limits same as IRAs ($7,000 + $1,000 catch-up age 50+)
• Allows alternative investments (real estate, precious metals, crypto)
• Requires IRS-approved custodian

9. Nondeductible IRA

• Same limits as traditional IRAs ($7,000 + $1,000 catch-up age 50+)
• Contributions not tax-deductible; earnings taxable at withdrawal

10. Annuities and Pension Plans (Brief Overview)

• Annuities: Insurance-based retirement products, providing guaranteed income. High fees, limited liquidity.
• Pension Plans: Employer-funded defined-benefit plans providing guaranteed lifetime income. Limited investment control.

11. Flexible Spending Account (FSA) Limits for 2025

• The maximum employee contribution to a health care FSA for 2025 is $3,300.
• If the FSA plan allows for carryover, the maximum amount that can be carried over to 2026 is $660.
• For Dependent Care FSAs, the maximum remains $5,000 per household (single or married filing jointly) or $2,500 if married and filing separately.

12. Health Savings Account (HSA) Limits for 2025

Coverage Type	2025 Contribution Limit	Catch-Up (Age 55+)	Minimum Deductible	Out-of-Pocket Max
Self-only	$4,300	+$1,000	$1,650	$8,300
Family	$8,550	+$1,000 (per eligible spouse, each in own HSA)	$3,300	$16,600

• Individuals age 55 or older can contribute an additional $1,000 as a catch-up contribution.
• HSA contributions can be made until the tax filing deadline (April 15, 2026, for tax year 2025).
• To be eligible for HSA contributions, you must be enrolled in a high-deductible health plan (HDHP) meeting the minimum deductible and out-of-pocket maximum requirements above.

See also Retirement Plan Contribution Limits in 2024.