Here’s what HIVE AI had to say about “What are the 2025 contribution limits for IRAs and 401(k)s?”:
2025 Retirement Contribution Limits
401(k), 403(b), and Governmental 457(b)
- Employee elective deferral limit: $23,500
- Age 50+ catch‑up: $7,500
- Special age 60–63 catch‑up (SECURE 2.0): $11,250 (instead of $7,500) for those turning 60, 61, 62, or 63 in 2025
- Combined potential deferral for age 50+: up to $31,000 (or up to $34,750 if age 60–63 in 2025, subject to plan terms)
IRAs (Traditional and Roth) — Personal Contribution Limits
- IRA contribution limit: $7,000
- Age 50+ IRA catch‑up: $1,000 (total $8,000 if age 50+)
SIMPLE IRA and SIMPLE 401(k)
- Employee deferral limit: $16,500
- Age 50+ catch‑up: $3,500
- Note: SECURE 2.0 may allow a higher SIMPLE deferral limit for certain small employers; check your plan.
Special starter deferral‑only 401(k)/403(b) plans
- Starter 401(k) and 403(b) deferral‑only plans: $6,000 employee deferral limit for 2025, with statutory COLA framework in future years
Additional catch‑up for ages 60–63 in SIMPLE IRA/401(k)
- Higher catch‑up for ages 60–63 (SECURE 2.0) applies; for SIMPLE plans, the standard catch‑up is $3,500 and the special higher catch‑up amount for 2025 is $5,250 for SIMPLE‑type plans referenced under 401(k)(11)/408(p)
Key notes
- Roth IRA income limits and traditional IRA deduction phase‑outs also adjust annually; confirm your eligibility based on 2025 MAGI thresholds in the latest IRS guidance.
- Plan‑imposed limits may be lower, and employer contributions can be subject to separate overall plan limits.
Sources
1 – IRS Newsroom – IR-2024-285 📄 Summarize
2 – IRS – Publication 560 Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans) 📄 Summarize
3 – Notice 2024-80 📄 Summarize
4 – IRS – Publication 590-A Contributions to Individual Retirement Arrangements (IRAs) 📄 Summarize
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