Retirement planning often involves keeping up with changing IRS rules and annual updates. Contribution limits adjust each year, and for 2025, those changes may affect how much you can set aside in different accounts. Knowing the updated numbers helps you plan ahead, avoid overcontributions, and potentially keep your long-term goals on track.

This guide covers the 2025 retirement contribution limits for 401k plans, IRAs, SEP and SIMPLE IRAs, and other major plan types. It also explains catch-up contributions under SECURE 2.0 and highlights key IRS deadlines and income thresholds. The goal is to give you clear, practical information so you can approach 2025 savings decisions with confidence.

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2025 Contribution Limits by Plan Type

Contribution rules are not the same across retirement accounts. Each plan type has its own limits, catch-up opportunities, and eligibility rules. Understanding these details helps you set the right expectations for 2025 and avoid mistakes such as overcontributing. Below is a breakdown of the major plan categories.

📌 Also read: 401k Contribution Limits & Deadlines For 2024 & 2025

401k, 403b, 457b, and Thrift Savings Plan Deferrals

For 2025, the elective deferral limit for workplace retirement plans such as 401k, 403b, governmental 457b, and the federal Thrift Savings Plan is $23,500. This is the maximum an employee may choose to contribute from their own salary.

✅ Employees age 50 or older may also make a catch-up contribution of $7,500, raising their total deferrals to $31,000.

✅ Under SECURE 2.0, employees aged 60 through 63 may qualify for a larger catch-up contribution of $11,250 instead of $7,500, but only if their specific plan adopts this enhanced provision.

📝 Note: These deferral limits apply per person, not per employer. If you contribute to more than one 401k, 403b, or similar plan in the same year, your combined employee contributions cannot exceed the annual ceiling.

Traditional and Roth IRA Contribution Limits

In 2025, the total contribution limit for IRAs—both traditional and Roth combined—is $7,000. To contribute the full amount, you must have at least $7,000 of earned income.

✅ Savers age 50 and above are eligible for a $1,000 catch-up contribution, raising their total IRA limit to $8,000.

✅ For Roth IRAs, eligibility is subject to income phase-outs based on modified adjusted gross income (MAGI). In 2025, the phase-out range is $150,000–$165,000 for single filers and heads of household, and $236,000–$246,000 for married couples filing jointly.

✏️ Hypothetical Example: A single filer with a MAGI of $160,000 may still make a partial Roth contribution but not the full $7,000.

SEP and SIMPLE IRA Contribution Limits

SEP and SIMPLE IRAs operate differently from standard IRAs, as contributions are typically employer-driven.

  • SEP IRA: Employers may contribute up to 25% of eligible compensation, with a maximum cap of $70,000 in 2025. Contributions must be made at the same percentage of pay for all eligible employees.
  • SIMPLE IRA: Employee salary deferrals are limited to $16,500 in 2025. Participants age 50 and older may contribute an additional $3,500. SECURE 2.0 allows certain SIMPLE plans to permit a higher catch-up contribution of $5,250 for ages 60–63, though this depends on whether the employer adopts the rule.

📝 Note: A SIMPLE IRA generally has lower contribution limits than a 401k but may be easier for small businesses to set up and administer.

MissionSquare Contribution Limits

MissionSquare offers 457b deferred-compensation plans that follow the same IRS rules as other 457b plans. For 2025, participants may defer up to $23,500, plus the standard $7,500 catch-up for age 50+. Those aged 60–63 could qualify for the $11,250 catch-up under SECURE 2.0 if their employer adopts the rule.

Combined employee and employer contributions to any qualified defined-contribution plan that MissionSquare may offer alongside a 457b (such as a 401a or 401k) are limited by IRC §415(c) to $70,000 for 2025. Age-50 catch-up contributions are allowed in addition, so a participant 50+ could reach $77,500.

MissionSquare also provides a unique “pre-retirement” catch-up feature, which lets participants contribute amounts they did not use in prior years. This is only available during the three years leading up to the plan’s normal retirement age and cannot be combined with the age-50 catch-up in the same year.

Total Defined Contribution Plan Caps

The IRS sets an overall ceiling for combined employee and employer contributions across all defined contribution plans. This includes 401a, 401k, 403b, SEP, and 457b plans.

For 2025, the IRC Section 415(c) cap is $70,000. Participants age 50 and older may contribute above this level through their plan’s catch-up provisions, resulting in a maximum potential combined contribution of $77,500.

📝 Note: These limits apply per individual, not per plan. If you have multiple plans across different employers, your combined contributions must stay within the overall cap.

Catch-Up Contributions and Special Rules

Catch-up contributions give older workers a chance to save beyond the standard limits. These provisions are designed to help those closer to retirement strengthen their savings during their peak earning years. The exact rules depend on both age and plan type.

Standard Catch-Up Contributions at Age 50+

Once a participant turns 50 by December 31, 2025, they may contribute above the base limits. This extra room is available across several retirement plans:

  • 401k, 403b, 457b, and Thrift Savings Plan: An additional $7,500 on top of the $23,500 elective deferral limit.
  • Traditional and Roth IRAs: An additional $1,000 beyond the $7,000 contribution cap.
  • SIMPLE IRAs: An additional $3,500 on top of the $16,500 limit.

These catch-up contributions make it easier for mid-career and older participants to increase their savings as they approach retirement.

SECURE 2.0 Higher Catch-Up for Ages 60–63

The SECURE 2.0 Act created a special window for savers in their early 60s, recognizing that this is often a time when income may be higher and retirement is drawing closer. In 2025, individuals who turn 60, 61, 62, or 63 may contribute more than the standard catch-up amount:

  • 401k, 403b, 457b, and TSP: The enhanced catch-up limit is $11,250, replacing the usual $7,500.
  • SIMPLE IRAs: Eligible participants may contribute up to $5,250 if their plan adopts this option.

📝 Note: Employers must amend their plan documents before these higher contributions can be offered.

SIMPLE IRA Special Catch-Up Rules

SIMPLE IRA plans have unique catch-up rules that differ slightly from other retirement accounts. For 2025, participants should be aware of three possible catch-up levels:

  • The general catch-up contribution for those age 50 and older remains $3,500.
  • Some plans that adopt the SECURE 2.0 COLA adjustment may allow $3,850 instead.
  • A super catch-up contribution of $5,250 applies to participants ages 60 through 63.

Because these rules vary depending on the employer’s adoption of SECURE 2.0 provisions, it’s best to confirm directly with your plan administrator which options are available.

Key Considerations for 2025 Retirement Planning

When planning your 2025 contributions, it’s not just about knowing the dollar limits. Income thresholds, penalty rules, and IRS deadlines all play a role in how much you can save and how to keep your retirement accounts compliant. Below are three important areas to keep in mind as you map out your strategy for the year.

Roth IRA Income Phase-Out Ranges

Your eligibility to contribute to a Roth IRA depends on your modified adjusted gross income (MAGI). Once your income passes certain thresholds, the amount you can contribute begins to shrink until it phases out entirely.

  • Single filers and heads of household: Contribution eligibility starts phasing out between $150,000 and $165,000 of MAGI. At incomes above $165,000, direct contributions are no longer permitted.
  • Married filing jointly: The phase-out applies between $236,000 and $246,000 of MAGI, with no contributions allowed beyond the upper limit.
  • Married filing separately: The window is extremely narrow—$0 to $10,000 of MAGI—effectively restricting most taxpayers in this category from contributing directly.

These limits were published in IRS Notice 2024-80 and confirmed in the IRS 2025 contribution updates. If your income places you above these ranges, you may need to consider alternatives such as a backdoor Roth strategy.

How to Avoid Overcontribution Penalties

Contributing more than the IRS allows doesn’t just go unnoticed—it creates an ongoing penalty until corrected. The IRS imposes a 6% excise tax on excess contributions for each year they remain in your account.

To avoid this costly outcome:

  • Track all contributions across accounts. Both Traditional and Roth IRAs count toward the annual limit.
  • Act quickly if you exceed the limit. You can withdraw excess funds, plus any earnings, by the due date of your federal tax return (April 15, 2026, for 2025 contributions).
  • Recharacterize contributions when necessary. If you contributed to the wrong IRA type, you may be able to fix the mistake by shifting it before filing.

If excess amounts remain past the deadline, the 6% penalty applies each year until corrected. Taking early action is the simplest way to stay penalty-free.

2025 IRS Deadlines and Filing Dates

Deadlines are just as important as limits. Missing one could mean losing a contribution opportunity or facing unexpected penalties. Key dates for 2025 include:

  • IRA contributions: You have until April 15, 2026 to make 2025 contributions. These will be reported on Form 5498.
  • Excess contribution corrections: Withdraw any overage by the same April 15, 2026, deadline. Note that filing extensions do not extend your contribution deadline.
  • Form 5329: If you owe excise tax on excess contributions, this form must be filed with your return by April 15, 2026.

Marking these dates early and confirming that contributions post correctly with your provider can help you stay on track without last-minute surprises.

Wrapping It Up

Retirement savers in 2025 face updated limits and rules that could influence contribution strategies. Keeping track of income thresholds, catch-up provisions, and IRS deadlines helps ensure contributions remain compliant and aligned with long-term goals. Taking time early in the year to confirm eligibility and adjust contributions can prevent costly mistakes down the road.

As the landscape continues to evolve, reviewing IRS updates and seeking professional guidance may provide added clarity. 

📌 Want more insights on building retirement savings? Check out these articles covering specific plan types, contribution strategies, and compliance rules:

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