2025 Contribution Limits

The IRS has announced new contribution limits for Traditional IRAs, Roth IRAs, 401(k)s, and Simple IRAs for 2025, along with updated Standard Deduction amounts and Marginal Tax Brackets.

The IRS has released its 2025 cost of living adjustments, which include new contribution limits, deduction amounts, and income phaseouts for the 2025 calendar year. For those wanting to contribute more to their retirement plans or those simply wanting to map out their savings strategy for 2025, this is good news. The chart below shows the dollar limitations on benefits and contributions for 2025. Here are some of the highlights.

Contributions to IRAs for 2025

The contribution limit is remaining the same for IRAs and Roth IRAs in 2025, staying at $7,000. For those 50 or older, the catch-up contribution remains at $1,000, allowing those in the catch-up range to contribute up to $8,000 toward their IRA or Roth IRA for 2025.

This limit is an aggregate limit between the two types of IRAs. For example, an individual tax filer cannot contribute $7,000 toward a Roth IRA and $7,000 to an IRA. They may only contribute a total of $7,000 across all IRAs. For married couples filing jointly, that contribution limit is doubled as each person may contribute up to the maximum amount.

One caveat to contributing to an IRA or Roth IRA is that you must have earned income to contribute. This can be a hiccup for some retirees who may want to contribute but do not have earned income. For married couples where one spouse has earned income and the other does not, they may still make contributions up to the limit for each individual’s IRA or Roth IRA as long as the earning spouse earns at least $14,000 (in 2024), or $16,000 when including the $1,000 catch-up for each.

In 2025, the IRA deductibility phaseout is also increasing. The phaseout for single filers is from $79,000-$89,000, meaning individuals with an adjusted gross income over $89,000 may not deduct Traditional IRA contributions. For married couples, the new phaseout range is $126,00 –$146,000.

For Roth IRAs, individuals must have a modified adjusted gross income (MAGI) of less than $150,000 to make a full Roth IRA contribution. The income phaseout range for Roth IRA contributions in 2025 is $150,000 – 165,000 (MAGI) for single filers. Married couples filing jointly must make less than $236,000 (MAGI) to make full Roth IRA contributions for each individual. The income phaseout range for Roth IRA contributions in 2025 is $236,000 – $246,000 for married couples filing jointly.

Contributions to Retirement Plans for 2025

The contribution limits for retirement plans are also going up in 2025, including for Simple IRAs and 401(k)s. The new 401(k) salary deferral limit is $23,500 for 2025, an increase of $500 from 2024. Due to changes from Secure Act 2.0, there a few changes to the catch-up contribution limits. For those age 50-59 or 64+, the catch-up contribution limit is $7,500 for 2025, which is unchanged from 2024. However, those age 60-63 can enjoy a “super catch-up” of $11,250 for 2025.

Simple IRA deferral limits have increased for 2025, allowing up to $16,500 of deferrals. There are similar new catch-up provisions from Secure Act 2.0 for Simple IRAs as well. The Simple IRA “super catch-up” amount for those age 60-63 is $5,250 for 2025. Simple IRA plans with 25 employees or less, or those with over 25 employees where the employer contributes a higher than usual amount, qualify for a $3,850 catch-up amount. Those with over 25 employees where the employer is making a 2% non-elective or 3% matching contribution only qualify for a $3,500 catch-up amount.

2025 Standard Deduction and Marginal Tax Brackets

The individual standard deduction increased in 2025 to $15,000, up from $14,600 in 2024. For married couples, the 2025 standard deduction is $30,000, up from $29,200 in 2024. Senior citizens age 65 or older will receive an additional $2,000 deduction (single filers) or $1,600 per individual (married filers).

There are seven marginal tax brackets in 2025: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. Each marginal bracket’s income range received an approximate 2.8% increase for 2025 vs. 2024 (see this link for a complete list of updated marginal income tax brackets for 2025 and for more information on 2025 cost of living adjustments).

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