Senior woman re-potting yellow flowers outside

Retirement Plan/IRA Limits for 2025

Retirement Plan Limits 2025 2024 2023
Social Security Wage Base $176,100 $168,600 $160,200
Maximum Compensation: $350,000 $345,000 $330,000
Defined Benefit – Annual Benefit: $280,000 $275,000 $265,000
Defined Contribution Limit: $70,000 $69,000 $66,000
401(k), 403(b), 457(b) Salary Deferral Limit: $23,500 $23,000 $22,500
401(k), 403(b), 457(b) Age 50-59 and 64+ Catch-Up:* $7,500 $7,500 $7,500
401(k), 403(b), 457(b) Age 60-63 Catch-Up:* $11,250 N/A N/A
SIMPLE Salary Deferral Limit: $16,500** $16,000 $15,500
SIMPLE Age 50-59 and 64+ Catch-Up: $3,500 $3,500 $3,500
SIMPLE Age 60-63 Catch-Up: $5,250 N/A N/A
SEP Minimum Compensation: $750 $750 $750
Highly Compensated Employee: $160,000 $155,000 $150,000
Key Employee/Officer: $230,000 $220,000 $215,000
* The catch-up provision only applies to Governmental 457(b) plans.
** SIMPLE IRA: Employers with 25 or less employees automatically have the option to contribute $17,600 (additional $3,850 if age 50 or older). Employers with 26-100 employees must disclose the option for extra deferrals in the participation notice and summary plan description.


IRA Limits 2025 2024
 IRA/Roth Maximum Contribution $7,000 $7,000
 IRA/Roth Catch-Up Contributions $1,000 $1,000
Traditional IRA Deductibility Single Filer's MAGI: Married Filing Jointly MAGI: Single Filer's MAGI: Married Filing Jointly MAGI:
Full Deduction < $79,000 < $126,000 < $77,000 < $123,000
Partial Deduction $79,000 – $89,000 $126,000 – $146,000 $77,000 – $87,000 $123,000 – $143,000
No Deduction > $89,000 > $146,000 > $87,000 > $143,000
If one spouse is covered by an employer-sponsored plan, the maximum joint compensation for a deductible contribution by the non-covered spouse in 2025: $236,000 - $246,000 ($230,000 - $240,000 for 2024).
Roth IRA Eligibility Single Filer's MAGI: Married Filing Jointly MAGI: Single Filer's MAGI: Married Filing Jointly MAGI:
Full Contribution < $150,000 < $236,000 < $146,000 < $230,000
Partial Contribution $150,000 – $165,000 $236,000 – $246,000 $146,000 – $161,000 $230,000 – $240,000
Not Eligible > $165,000 > $246,000 > $161,000 > $240,000


Withdrawals

Age: < 59 1⁄2 = 10% penalty applies
Penalty exceptions: death, disabililty, substantially equal periodic payments (Rule 72(t)), purchase of first-time home, higher education expenses, medical expenses, health insurance, and distributions for certain declared Presidential Disaster Area relief

Age: 59 1⁄2 – 73 = No penalty. No mandatory withdrawals.

Age: > 73 = Required minimum distributions (RMDs)

RMD Exceptions: Roth IRAs, Roth 401(k)s, and Qualified Plans if still working and not a 5% or greater owner (may be determined by plan document)

The information herein is taken from sources deemed reliable but is not guaranteed. Stifel does not provide tax or legal advice. Since tax laws are always subject to interpretation and possible changes, you should consult with an attorney, accountant, or other qualified tax advisor as it applies to your particular situation.

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