By Northstar Financial Planners
It's important to review and adjust your contribution limits for your retirement plans to help ensure you maximize your annual contributions. Below are the updated annual limits for the retirement savings plans set by the IRS for 2025.
IRAs
IRA contribution limit: $7,000.
IRA catch-up contribution for age 50 and over: $1,000.
Income ranges to make deductible traditional IRA contributions:
Single, covered by a workplace retirement plan: Phase-out range is between $79,000 and $89,000.
Married, filing jointly with the spouse making the IRA contribution covered by a retirement plan at work: Phase-out range is between $126,000 and $146,000.
Married, filing jointly, and not covered by a retirement plan at work: Phase-out range is between $236,000 and $246,000.
Income phase-out range for making Roth IRA contributions:
Single: $150,000 to $165,000.
Married, filing jointly: $236,000 to $246,000.
Tip: If your income is above these thresholds, you might consider a “backdoor” Roth contribution this year by making a non-deductible traditional IRA contribution and immediately converting that traditional IRA to a Roth IRA.
Maximum SIMPLE IRA contribution limits: $16,500.
SIMPLE IRA catch-up for age 50 and over: $3,500.
SIMPLE IRA catch-up for workers who attain age 60, 61, 62, and 63 in 2025: $5,250.
401(k), 403(b) and 457 Plans
Contribution limit: $23,500.
Catch-up for age 50 and over: $7,500.
Catch-up for workers who attain age 60, 61, 62, and 63 in 2025: $11,250.