The IRS has announced inflation-adjusted figures for retirement account savings for 2025, and we’re here to help you stay informed about the updated contribution limits for popular retirement savings plans.
Here's what’s changing:
IRA Contribution Limits
In 2025, eligible individuals can contribute up to $7,000 to a traditional IRA or Roth IRA. If you’re age 50 or older, you can take advantage of a catch-up contribution, raising your total limit to $8,000.
Workplace Retirement Plans
For workplace retirement plans like 401(k) and 403(b), the annual contribution limit has increased by $500 to $23,500. The catch-up contribution for employees aged 50 and older remains at $7,500, making the total contribution limit for those over 50 $31,000.
Roth IRA Income Limits
The income thresholds for contributing to a Roth IRA have also increased, providing more flexibility for savers. Contribution eligibility depends on your filing status and modified adjusted gross income (AGI):
2024 Roth IRA Income Phase-Out Limits
- Single: $146,000 - $161,000
- Married Filing Jointly: $230,000 - $240,000
2025 Roth IRA Income Phase-Out Limits
- Single: $150,000 - $165,000
- Married Filing Jointly: $236,000 - $246,000
It’s Not Too Late to Maximize Your 2024 Contributions
If you haven’t made your 2024 IRA contributions yet, there’s still time! The deadline for making 2024 contributions to traditional IRAs, Roth IRAs, or SEP IRAs is Tuesday, April 15 2025, or the day you file your taxes, whichever comes first.
Let’s Make a Plan Together
We hope you found this update helpful and timely! If you’d like to discuss how these changes impact your tax strategy or savings goals, we’d be happy to help. Give us a call, send an email, or schedule a meeting using this link. Whether it’s a phone call or a Zoom session, we’re here to help you make the most of your retirement savings opportunities.