The IRS has set new contribution limits for retirement plans in 2025, raising the cap for 401(k) plans to $23,500, up from $23,000 in 2024. 
Here’s a quick overview of the main changes:
- 401(k), 403(b), 457, and Thrift Savings Plans: Annual contribution limit increases to $23,500.
- IRA Contribution Limits: Remain at $7,000, with a $1,000 catch-up for those 50 and older.
- 401(k) Catch-Up Contributions: For participants 50+, the catch-up limit is $7,500, allowing total contributions of up to $31,000. For ages 60-63, the catch-up limit increases to $11,250.
Income Phase-Outs for IRAs and Roth IRAs:
- Traditional IRA phase-outs start at $79,000 for singles and $126,000 for couples filing jointly.
- Roth IRA phase-outs start at $150,000 for singles and $236,000 for couples filing jointly.
Saver’s Credit Income Limits:
- Up to $79,000 for joint filers, $59,250 for heads of household, and $39,500 for single filers.
SIMPLE Plans:
Contribution limit rises to $16,500, with a special increase to $17,600 for specific SIMPLE accounts. The catch-up limit for those 50+ is $3,500, or $5,250 for ages 60-63.
Further details are on IRS.gov.
