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 |
** 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 appliesPenalty 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.
1124.7376992.1